Bajaj Auto ’s net profit for the second quarter rose lower-than-expected 6% year-on-year at Rs 726 crore hurt by a forex loss incurred on forward contracts. However, revenue surged to its highest ever, riding on the back of strong sales of motorcycles and commercial vehicles.
Revenue for July-September rose 21% year-on-year at Rs 5,342 crore.
Analysts on average had expected Bajaj Auto’s net profit at Rs 757 crore on revenue of Rs 5,057 crore.
Bajaj Auto shares were trading down 1.2% at Rs 1,617 crore on NSE in afternoon trade.
Bajaj Auto said it incurred a MTM loss of Rs 95 crore on valuation of some of the forward contracts during the three-month period. The company said it is a notional loss and will get reversed on maturity of the contracts.
Bajaj Auto’s operating EBITDA (earnings before interest, taxes, depreciation and amortization) in the second quarter was up 18% from a year ago at Rs 1,057 crore. It said EBITDA margin was at 20.1%, up from 19.1% in the first quarter.
The company sold 10.27 lakh motorcycles in July-September, up 16% year-on-year. Motorcycle exports surged 37% at 3.43 lakh units. But domestic sales hit the slow track, rising just 8% at 6.85 lakh units.
Commercial vehicle sales also rose 17% year-on-year at 1.37 lakh units. While exports jumped 44% at 81,488 units, domestic sales declined 9% at 55,332 units.
After accelerating 30% year-on-year in 2010-11, automobile sales this year have hit speed bumps due to expensive loans, high fuel prices and the overall slowdown in the economy.
SIAM (Society of Indian Automobile Manufacturers) expects overall auto sales in India will grow only 11-14% in 2011-12. While two-wheeler sales are seen rising 13-15% this fiscal, passenger car sales, the worst hit, are expected to grow only 2-4%.
Bajaj Auto’s exports have been strong though. It exported 4.24 lakh vehicles in the second quarter, up 38% year-on-year. In value terms exports were up 50% at 1,733 crore.
Bajaj Auto had raised product prices by 3.5% in the export market during the quarter.
"Demand from overseas markets is robust. Company is on course to exceed its target for the year," it said.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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