Bajaj Auto Ltd's Q1FY20 standalone net profit remains flat yoy to Rs1,125.7cr : In-line with Estimates

The company’s standalone revenue stood at Rs7,755.8cr, up 3.9% yoy and 4.5% qoq.

Jul 26, 2019 07:07 IST India Infoline Research Team

Bajaj Auto Ltd Q1FY20

Standalone Results Q1FY20: (Rs. in cr)

Q1FY20 YoY (%)
Revenue 7,755.8 3.9
EBITDA 1,198.2 [10.5]
EBITDA Margin (%) 15.4 [249]
Net Profit (reported) 1,125.7 0.9
***EBITDA margin change is bps
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.





Technical View:

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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