Bajaj Auto (Q4 FY12)

India Infoline News Service | Mumbai |

Total volumes for Q4 FY12 increased 7.3% yoy, led by 26% yoy surge in export volumes

CMP Rs1,573, Target Rs1,789, Upside 13.7% 
  • Total volumes for Q4 FY12 increased 7.3% yoy, led by 26% yoy surge in export volumes
  • Blended realizations were lower by 3% yoy on account of adverse product mix
  • OPM at 19.8% was higher by 41bps yoy and 5bps qoq on the back of lower raw material costs as a percentage of sales
  • Net profit at Rs7.7bn was lower than our expectations
  • Margins could be under pressure going ahead considering the new duty drawback rates are lower than the previous DEPB rates
  • We maintain our BUY with a revised 9-month price target of Rs1,789
Result table
(Rs m) Q4 FY12 Q4 FY11 % yoy Q3 FY12 % qoq
Total volumes 1,017,167 948,195 7.3 1,075,441 (5.4)
Export volumes 347,414 275,843 25.9 380,912 (8.8)
Total realizations 41,320 42,505 (2.8) 44,289 (6.7)
Net sales 46,514 41,448 12.2 49,859 (6.7)
Material costs (31,412) (28,543) 10.1 (33,596) (6.5)
Purchases (1,714) (1,227) 39.7 (2,040) (16.0)
Personnel costs (1,196) (1,338) (10.7) (1,320) (9.5)
Other overheads (2,987) (2,307) 29.5 (3,061) (2.4)
Operating profit 9,206 8,033 14.6 9,841 (6.5)
OPM (%) 19.8 19.4 41 bps 19.7 5 bps
Depreciation (434) (301) 44.5 (321) 35.1
Interest (18) (1)   (0)  
Other income 1,395 1,562 (10.7) 1,681 (17.0)
Extra ordinary items 203 7,246 (97.2) (589) (134.4)
PBT 10,351 16,539 (37.4) 10,612 (2.5)
Tax (2,631) (2,535) 3.8 (2,660) (1.1)
Effective tax rate (%) 25.4 15.3   25.1  
Reported PAT 7,720 14,004 (44.9) 7,952 (2.9)
PAT margin (%) 16.6 33.8 (1,719) bps 15.9 65 bps
Ann. EPS (Rs) 106.7 193.6 (44.9) 109.9 (2.9)
Source: Company, India Infoline Research

Revenues lower than expectations

Bajaj Auto Ltd (BAL) reported a 12.2% yoy rise in revenues, on the back of a 7.3% yoy volume growth but was lower than expectations due to fall in realizations. On a sequential basis, volumes were lower by 5.4% while realizations were also lower by 6.7%. Fall in realizations was on the back of adverse product mix and qoq appreciation in Rupee against the US Dollar. In terms of volumes, growth was led by 26% yoy surge in exports, owing to 27.9% jump in two wheeler and 18.2% surge in three wheeler exports. In the domestic market, two wheeler volumes remained flat while three wheeler volumes declined 3.4% yoy.


Operational performance
Particulars Q4 FY12 Q4 FY11 Yoy (%) Q4 FY11 qoq (%)
Motorcycles          
Domestic 616,516 617,255 (0.1) 642,395 (4.0)
Export 280,732 219,416 27.9 304,354 (7.8)
           
Three-wheelers          
Domestic 53,237 55,100 (3.4) 52,134 2.1
Export 66,682 56,427 18.2 76,558 (12.9)
Source: Company, India Infoline Research

Cost analysis
As a % of net sales Q4 FY12 Q4 FY11 bps yoy Q3 FY12 bps qoq
Raw material 67.5 68.9 (133) 67.4 15
Purchases 3.7 3.0
BSE 3,205.30 53.90 (1.71%)
NSE 3,198.80 36 (1.14%)

***Note: This is a NSE Chart

 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.