Bajaj Auto Q4 net up 29% on double digit volume growth - business standard

Bajaj Auto Q4 net up 29% on double digit volume growth

Ajay Modi | New Delhi May 25, 2016 06:22 PM IST

Bajaj-Auto-Q4-net-up-29-on-double-digit-volume-growth
Riding on a 12 per cent growth in motorcycle sales and benign raw material prices leading two-wheeler manufacturer Bajaj Auto reported a 29 per cent increase in net profit for the quarter ended March 31, 2016. The company's profit for the year ended March 31 jumped 30 per cent to a record Rs 3,652 crore. Net sales for the quarter rose 15 per cent to Rs 5,304 crore, driven by a 12 per cent increase in sales of two wheelers and a nine per cent growth in three wheeler sales. Operating EBIDTA margin for the quarter was 23.1 per cent against 19.4 per cent in same quarter of previous year. Reacting to the results, the company's stock price rose 3.96 per cent to Rs 2,478.85 at the BSE on Wednesday. The BSE Sensex also gained 2.28 per cent.

Net sales for the full year rose 5.4 per cent to Rs 22,253 crore, helped by a 7.24 per cent increase in two wheeler sales to 1.89 million units in domestic market even though exports declined 4 per cent to 1.45 million units. EBIDTA margin for the year also improved to 22.1 per cent against 20.3 per cent in the previous year.

The company expects to maintain a margin of about 20 per cent in FY17. "Material prices should largely be under control this year. We will have the full year benefit of Avengers and V this year. The USD exchange rate of 67.5/rupee is also positive," said S Ravikumar, president (Business Development).

Exports, which bring over 40 per cent of the revenue to the country's largest two-wheeler exporter, could be a pain. "We have to be watchful. There is volatility in export markets due to macroeconomic issues. Oil producing nations are impacted due to low crude oil prices. Then there is the problem of dollar availability. Everything is out of our control," he said.

The positive factor could be a further improvement in domestic market share. Ravikumar said the company had a 20 per cent share in domestic market as of March 31 and is hopeful of increasing it to 24-25 per cent by March 2017. The company plans to bring a refreshed version of its two motorcycles, Pulsar and Platina, in the July-September quarter.
Bajaj Auto Q4 net up 29% on double digit volume growth - business standard Bajaj Auto Q4 net up 29% on double digit volume growth - business standard Reviewed by Ajit Kumar on 7:59 PM Rating: 5

No comments:

Powered by Blogger.