India’s second-largest two-wheeler manufacturer, Bajaj Auto, posted its Q1 FY23 results on July 26, 2022. The company reported a 11% YoY (Year on Year) jump in its standalone net profit which came in at Rs 1,173 crore from Rs 1,061 crore in the year ago period. On a sequential basis, however, the net profit was down 20% from the Rs 1,469 crore reported in the previous quarter.
Bajaj Auto’s revenue from operations is up 8% YoY to Rs 8,005 crore in the quarter under review. The company has announced revenues at Rs 7,386 crore in Q1 FY22. On a QOQ (Quarter on Quarter) basis, the revenue from operations was largely flat.
Despite supply constraints and cost headwinds, EBITDA for the company grew 15%, with margins improving by 100 base points despite supply constraints and cost headwinds. The margin growth may be attributed to judicious price increases, better foreign exchange realisation, and favourable offset in the material cost inflation.
Bajaj Auto’s total exports were down by 10% YoY to Rs 5.80 lakh crore in the quarter under review from Rs 6.48 lakh crore in the year ago period while the same was flat on a sequential basis. ASEAN and LATAM markets were saving graces for the company despite weak macros. Total volumes for the automaker were however down 7% for the quarter to 9,33,646 units against 10,06,014 units in the year-ago quarter. According to the company filing, sales for the quarter were impacted by the inadequate availability of semiconductors, although the situation improved in the latter part as new supply sources were developed.
At the time of the declaration of the results, around 2:05 pm, the Bajaj Auto share was trading in the red at Rs. 3,982, reacting negatively to the result.
Hits of Bajaj Auto Q1 Results
- Net profit up 11% YoY at Rs 1,173 crore from Rs 1,061 crore in the year ago period
- Revenue from operations up 8% YoY to Rs 8,005 crore in the quarter under review from Rs 7,386 crore in Q1 FY22
- EBITDA up 15% YoY to Rs 1,328 crore from Rs 1,153 crore in the corresponding quarter in the year ago period.
- EBITDA margin up 100 base points YoY to 16.6% from 15.6% in the year ago period
- Total income up 8% YoY, 1% QoQ to Rs 8,324 crore from Rs 7,715 crore in the year ago period and Rs 8,264 crore in the previous quarter respectively.
Misses of Bajaj Auto Quarterly results
- Net profit down 20% QoQ to 1,173 Rs crore from Rs 1,469 crore in the previous quarter
- EBITDA down 5% QoQ to Rs 1,328 crore from Rs 1,396 crore in Q4 FY22
- EBITDA margin down by 90 base points QoQ to 16.6% in the quarter under review from 17.5% in the previous quarter
Sales Volumes Bajaj Auto Results
- Domestic sales down 1% YoY, 9% QoQ to Rs 3.52 lakh crore in Q1 FY23 from 3.57 lakh crore in the year ago period and Rs 3.89 lakh crore in the previous quarter.
- Exports down 10% YoY to Rs 5.80 lakh crore in the quarter under review from Rs 6.48 lakh crore in the year ago period while the same was flat on a sequential basis
- Total two-wheeler sales down 6% YoY and 1% QoQ to Rs 8.47 lakh crore in the quarter under review from Rs 8.99 lakh crore in the year ago period and Rs 8.59 lakh crore in the previous quarter.
Other things to know about Bajaj Auto Ltd
- The company committed to invest in the EV business and a new state-of-the-art plant was commissioned under the Chetak Technology India Ltd in June 2022.
- The company approved a share buyback of Rs 2,500 crore in June 2022.
- Bajaj Auto’s P/E ratio is at 18.87 against the sector P/E ratio of 131.85.
- The company’s P/B ratio is at 3.90 against the sector P/B ratio of 5.77
- Bajaj Auto’s dividend yield is at 3.48% against the sector yield of 0.59%
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Research Analyst: Bavadharini KS