Bajaj Auto Q3 net down -16.7% yoy at Rs1,429.68cr on higher inventory and input costs in the quarter

19 Jan 2022 , 06:12 PM

Bajaj Auto Ltd reported flat 1.25% yoy growth in total revenues for the Dec-21 quarter on consolidated basis at Rs9,022cr. On a sequential basis, the revenues were up by 2.96%.

During the December 2021 quarter, Bajaj Auto total volumes of 11,81,361 units. This comprised of domestic 2-wheeler sales of 471,284 units and 2-wheeler exports of 577,261 units. 

The rest was accounted for by sale of CVs. Overall 2 wheeler volumes fell by -12% yoy due to chip and other supply chip constraints. However, while the domestic volumes fell by -16%, the export volumes fell by just -5%.

Domestic CV volumes were up 52% while the CV export volumes were flat with just about 3% growth.

For the Dec-21 quarter, the operating profits were down by -20.94% on a yoy basis. The operating profits were also lower by -9.2% on sequential basis.  

The EBITDA was down -20% yoy at Rs.1,405cr due to higher input costs and also higher inventory costs. The EBITDA margins fell from 19.8% to 15.6% yoy, despite overall sales being compensated by price hikes. Bajaj Auto has surplus cash of Rs.17,883cr.  

Operating margins fell sharply from 20.48% in Dec-20 quarter to 15.99% in the Dec-21 quarter. Operating margins are also lower on a sequential basis.

Net Profit after tax (PAT) for the Dec-21 quarter was down -16.7% yoy at Rs1,430cr as operating profit weakness got transmitted to the bottom line.

In the sequential Sep-21 quarter, Bajaj Auto had shown Rs501cr exceptional gains due to fair value adjustment of global subsidiary investments. PAT margins fell from 19.26% in the Dec-20 quarter to 15.85% in the Dec-21 quarter. Net profit margins were also lower sequentially.

Financial highlights for Dec-21 compared yoy and sequentially

	Bajaj Auto Ltd
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 9,021.65	₹ 8,909.88	1.25%	₹ 8,762.18	2.96%
Operating Profit (Rs cr)	₹ 1,442.49	₹ 1,824.60	-20.94%	₹ 1,599.60	-9.82%
Net Profit (Rs cr)	₹ 1,429.68	₹ 1,716.26	-16.70%	₹ 2,039.86	-29.91%
Diluted EPS (Rs)	₹ 49.40	₹ 59.30		₹ 70.50
OPM	15.99%	20.48%		18.26%
Net Margins	15.85%	19.26%		23.28%