Bajaj Auto posts Highest Operating Profit of Rs 1,306 Cr in Q2 FY18
A meeting of the Board of Directors of Bajaj Auto Limited was held today to consider and approve the results
for Q2 / FY18. For Q2 / FY18, Bajaj Auto recorded its highest ever turnover of Rs 6,863 crore, highest ever operating EBITDA of Rs 1,383 crore, highest ever operating profit of Rs 1,306 crore with a EBITDA margin of 20.8%.
The other highlights are
- Profit before tax – ` 1,517 crore; 2nd highest in the history of the Company ! ( Highest being ` 1,561 crore in Q2 / FY17 )
- Profit after tax – ` 1,112 crore; 2nd highest in the history of the Company ! ( Highest being ` 1,123 crore in Q2 / FY17 )
Highlights for individual BU’s is given below
A. International Business
Q2 / FY18 sales volume recorded a growth of over 6% – to 402,575 units.
— New / Nascent markets now contribute ~16% of the total volume as against 10% in FY17 and
6% in FY16.
— With stability returning in Nigeria, Company reaped the benefits of its support to the Network and Customers during difficult times in the past; motorcycle volumes have steadily improved from ~8,000 units in April 2017 to 26,000 units in August 2017 and 23,000 units in September 2017.
— The relative slowdown in Srilanka has been compensated by a substantial growth in volume in Bangladesh and Philippines.
— Order book for October is healthy and outlook for November and December 2017 is encouraging. The Company is on track to exceed its target for the year.
B. Commercial Vehicles
Company recorded its highest ever quarterly volume of 84,938 units in the domestic market.
— Growth in volumes over Q2 / FY17 was 14%.
— With discontinuation of permits in the State of Maharashtra, new permits released in Delhi and
replacement of 2stroke three-wheelers with 4stroke three-wheelers for the city of Bangalore,
the Company is well poised to leverage its overwhelming leadership position.
— With demand for Commercial Vehicles in domestic and international markets over-stripping its
supply, export orders are temporarily deferred and capacity is diverted to the domestic market.
The outlook for Commercial Vehicles remain very positive and the Company is likely to cross a
record three lakh units in FY18 – well ahead of its annual target.
C. Motorcycle – Domestic
- Sold over 281,000 units of CT and Platina during Q2 / FY18 – a growth of 12% over Q2 / FY17 and 52% over Q1 / FY18.
- Bajaj CT sold over 176,000 units – a growth of 24% over Q2 / FY17.
The new CT electric start, launched in August 2017, sold over 99,000 units in two months. - Bajaj Platina sold 105,000 units in Q2 / FY18. The New Platina, launched in September 2017, has met with very good acceptance – sold 45,000 units in September 2017 and was stocked out.
- Share in domestic market for this segment improved to 32% in Q2 / FY18 as against
25% in Q1 / FY18. - Bajaj Pulsar, along with Avenger and Dominar, sold nearly 237,000 units in Q2 / FY18.
- The newly launched NS series of Pulsars sold ~42,000 units in Q2 / FY18.
- With sales close to 100,000 units for September 2017 ( 98,601 units ), share in domestic market was an overwhelming 45%.
- Share in domestic market for this segment was ~42% in Q2 / FY18.
- Overall share in domestic market improved to 17% in Q2 / FY18. For the month of September 2017, overall share in domestic market was ~19.5%.
3. Results – Q2 / FY18
3.1. Standalone
With all high margin products and business verticals doing well ( International Business, Commercial Vehicle and Pulsar ) and higher capacity utilization driven by CT and Platina, the Company has maintained its Industry high operating EBITDA margin of 20.8%.
- Standalone profit before tax was ` 1,517 crore as against ` 1,288 crore in Q1 / FY18 and 1,561 crore in Q2 / FY17.
- Profit after tax was ` 1,112 crore as against ` 924 crore in Q1 / FY18 and
` 1,123 crore in Q2 / FY17.
3.2. Consolidated
- Consolidated profit after tax was 1,194 crore as against 837 crore in Q1 / FY18 and 1,201 crore in Q2 / FY17.
4. Cash and cash equivalents
- As on 30th June 2017, surplus cash and cash equivalents stood at 13,256 crore.
- After payment of dividend and tax thereon amounting to 1,888 crore, surplus cash and cash equivalents stood at ` 12,699 crore as on 30th September 2017.
Issued by Mr Kevin D’sa President (Finance) of Bajaj Auto on 17th October 2017.
