InvestorQ : How do you see the latest quarterly results of Bajaj Auto for the Dec-20 quarter?
rhea Babu made post

How do you see the latest quarterly results of Bajaj Auto for the Dec-20 quarter?

Riya Dwivedi answered.
1 year ago

Even ahead of the announcement of Bajaj Auto results the markets were already expecting solid numbers. However, it turned out better than street expectations. Consolidated net profits were up 29.7% at Rs.1716 crore for the Dec-20 quarter. In terms of top line, the revenues grew by a healthy 16.62% to Rs.8910 crore in the Dec-20 quarter.

Even the operating performance was a lot better this time around. For the quarter, the EBITDA was up 26.5% at Rs.1730 crore while the EBITDA margins expanded by 150 basis points to 19.4%. This is the sharpest expansion in operating margins that Bajaj Auto has seen in a long time and this was largely driven by export sales boost.

In the Dec-20 quarter, Bajaj Auto sold a total of 13.06 lakh units. Out of this 6.19 lakh units were sold in the domestic market which continues to be under pressure. However, Bajaj Auto did improve its share in the domestic market from 17.5% to 18.6%. It exported a record 6.87 lakh unites in the quarter and this is one of their export performances and a testimony of the export strategy that Bajaj has always focused on.

Bajaj is also betting in a big way on high-end motorcycles. The company also confirmed that it will be investing Rs.650 crore in its Chakan plan to manufacture high-end motorcycles. The company has always been a cash rick company and it has improved further as of Dec-20 Bajaj Auto had surplus cash and cash equivalents of Rs.16,891 crore in its books.