Bajaj Auto Ltd Q1 PAT up 196% at Rs1,170cr yoy on export thrust, but sequential numbers hit by COVID 2.0

Bajaj Auto Ltd reported 139.87% growth yoy in total sales revenues for the Jun-21 quarter on consolidated basis at Rs7,386cr

Jul 22, 2021 12:07 IST India Infoline News Service

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Bajaj Auto Ltd reported 139.87% growth yoy in total sales revenues for the Jun-21 quarter on consolidated basis at Rs7,386cr. On a sequential basis, the revenues were down -14.08% compared to Rs8,596cr in the Mar-21 quarter on account of COVID 2.0 impact on output. In a way, the recovery of the previous three quarters got partially offset in the Jun-21 quarter due to the lag effect of COVID 2.0, which is evident in the sequential drop in sales revenues.

For the Jun-21 quarter, Bajaj Auto reported volumes of 10,06,014 units, with volumes lower on sequential basis due to the COVID 2.0 effect. The growth in top line came predominantly from the automotive sector with the investment business seeing a fall in revenues largely due to lower yield on debt investments in the quarter. However, weaker domestic demand was partially offset by the non-cyclical exports business of Bajaj Auto.

For the Jun-21 quarter, the consolidated EBITDA profits were up 161.5% yoy at Rs1,153cr, but operating profits were lower sequentially by -25.99% due to COVID 2.0 impact on the top line even as costs were largely static. The operating EBITDA margin at 15.61% was higher yoy but lower on a sequential basis. Lower sequential revenues resulted in 160 bps loss of absorption of fixed costs, widening the profit fall on sequential basis.

Net profits for the Jun-21 quarter were up 195.86% on a yoy basis at Rs1,170cr even as sequential profits fell by -24.57% on COVID 2.0 effect. There was a sharp spike in raw material cost and despite partial price hikes, the net impact of higher raw material costs resulted in a 220 bps impact on the EBITDA margins. Total exports as a percentage of sales was nearly 65% of total sales.

Financial highlights for Jun-21 compared yoy and sequentially

Bajaj Auto Ltd
Rs in Crore Jun-21 Jun-20 YOY Mar-21 QOQ
Total Income (Rs cr) ₹ 7,386 ₹ 3,079 139.87% ₹ 8,596 -14.08%
Operating Profit (Rs cr) ₹ 1,153 ₹ 441 161.45% ₹ 1,558 -25.99%
Net Profit (Rs cr) ₹ 1,170 ₹ 396 195.86% ₹ 1,551 -24.57%
Diluted EPS (Rs) ₹ 40.50 ₹ 13.70 ₹ 53.60
OPM 15.61% 14.32% 18.12%
Net Margins 15.84% 12.84% 18.05%

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