Bajaj Auto Ltd. Q3 FY22 Results

22 January 2022
3 min read

Bajaj Auto released its earnings report for Q3 FY22 on January 19, 2022. The company reported a 16.7% YoY decline in its profit after tax (PAT) to Rs 1,429.6 crore from Rs 1,716.2 crore in the year-ago period. On a sequential basis, the company reported a worrying 30% QoQ loss from Rs 2,039.8 crore reported in the previous quarter.

The economy has been facing rising commodity inflation, reduced demand for two-wheelers, and a lukewarm response in the festive season. The demand for two-wheelers over the last two years has been relatively low due to the pandemic. High fuel costs, the transition to the BS-VI emission standards, and the introduction of the anti-lock braking systems amid the demand for EV two-wheelers contributed to Bajaj Auto’s worrisome performance.

Although the company has recorded an increase in its revenue from operations, it is marginal at 1.25% YoY. The revenue from operations came in at Rs 9,021 crore in the quarter under review against Rs 8,909 crore in Q3 FY21. The revenue from operations is up 3% sequentially from the Rs 8,762 crore reported in the previous quarter.

Bajaj Auto’s total income remained flat on a YoY basis with a mere 0.9% increase at Rs 9,369 crore from Rs 9,279 crore in the corresponding quarter in the last financial year. The total income grew by 3% QoQ from Rs 9,080 crore in the previous quarter.

The stock of Bajaj Auto closed in the green at Rs 3,436.8 per share after gaining 1.05% ahead of its earnings report released at the end of the intraday trading session on January 19, 2022.

Hits

  • Revenue from operations up 1.25% YoY at Rs 9,021 crore against Rs 8,909 crore in Q3 FY21
  • Revenue from operations up 3% at Rs 9,021 crore from Rs 8,762 crore
  • Total income up 0.9% at Rs 9.369 crore from Rs 9,279 crore

Misses

  • PAT down 16.7% YoY to Rs 1,429.6 crore from Rs 1,716.2 crore in the year ago period
  • PAT down 30% QoQ loss at Rs 1,429.6 crore from Rs 2,039.8 crore in the previous quarter
  • EBITDA down to 15.6% from 19.8% on a YoY basis
  • EBITDA down 20% YoY to Rs 1,405 crore from Rs 1,764 crore in the year ago period
  • Turnover remained flat at Rs 9,294 crore
  • The Earnings Per Share (EPS) declined to Rs 49.4 from Rs 70.5 in the previous quarter

Volume of sales

The company sold a total of 11.8 lakh units in the October-December quarter. On a YoY basis, this was a 10% dip from 13.06 lakh units sold in Q3 FY21. On a sequential basis, the volume of sales increased by 3.2% in Q3 FY22 from 11.4 lakh units in the previous quarter.

The sales of domestic vehicles declined 16% YoY to 5.23 lakh units from 6.19 lakh units in the corresponding quarter in the previous financial year. This is a decline of 1.6% from 5.32 lakh units sales reported in the previous quarter.

The export volume of Bajaj Auto’s vehicles increased 7.4% QoQ to 6.58 lakh units from 6.12 lakh units in the previous quarter. On a YoY basis, the exports saw a 4% dip from 6.87 lakh units in the year ago period.

Other things to know about Bajaj Auto

  • The P/E ratio of Bajaj Auto is at 20.26 which is the highest in the large-cap two-wheeler segment, while its P/B ratio is at 3.61 against the industry average of -478.24.
  • Bajaj Auto has the highest dividend yield in the two-wheeler segment at 4.12% against the industry average of 0.47% 

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