Bajaj Auto Limited (BJAUT) reported muted numbers for the quarter, broadly in-line with estimates for Q1FY20. Standalone revenue grew by 3.9% yoy to Rs7,755.8cr (up 4.5% sequentially). Volume grew by 1.7% and resultantly, negative operating leverage led to EBITDA decline of 10.5% yoy to Rs1,198.2cr, ~5% above expectation. Thus, EBITDA margin contracted 249bps yoy to 15.4%. The reported PAT stood at Rs1,125.7cr, flat yoy.
The company reported 1.7% yoy growth in sales volume and realisation per unit (derived) stood at Rs62,187, growth of 2.2% yoy.
Company’s overall share in the domestic motorcycle market stood at 18.3% against 18.7% in FY19 and 16.3% in Q1FY19. Retail share in the domestic motorcycle market is nearly 19%.
In domestic motorcycle segment, company recorded a growth of 3% yoy to 6,10,936 units against an industry de-growth of 9% yoy.
In the entry motorcycle segment, company sold over 3,00,000 units during the quarter (CT over 1,23,000 units and Platina over 1,66,000 units). Company enjoys a market share of 30.6% in entry level motorcycles.
In the Sports segment, company continued to maintain its dominance with market share of 46.9% yoy in Q1FY20.
In the commercial vehicle segment, company recorded sales of over 86,217 units, down 9% yoy. It maintained its dominance with market share of 57.1 %.
In the international business, company recorded the highest ever exports of 550,021 units, up 2% yoy. Motorcycles sold 471,691 units, growth of 8% yoy. Commercial Vehicles sold over 78,330 units, a decline of 23% yoy, due to lower sales in Egypt.
Other income for the quarter was up by 27.2% yoy and it restricted the PAT decline to mere 0.9% despite a 10.5% decline in EBITDA.
Bajaj Auto Ltd is currently trading at Rs. 2,642.85, up by 97.7 points or 3.84% from its previous closing of Rs. 2,545.15 on the BSE.
The scrip opened at Rs. 2,540.10 and has touched a high and low of Rs. 2,648.05 and Rs. 2,506.15 respectively. So far 12,36,595 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 100 DMA.
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