BAJAJ AUTO = Q3 FY 2011 RESULTS = QTR ENDING DECEMBER,2010 = NET PROFIT UP 40.4% YOY = FUTURE MORE PROMISING

Bajaj Auto Limited

NSE Symbol       BAJAJ-AUTO

BAJAJ AUTO has produced excellent results  for the 3^rd quarter ending December,2010.

Net Sales     is Rs.4028 cr – down by 3.65% from previous qtr; up by 7.78% from Q1; up by 22.42% from Q4 of FY10; and up by a good 27.24% from Q3 of FY10.

Operating Profit  is Rs.818 Cr – down by 5.64% from Q2; Up by 9.82% from Q1; up by 10.53% from Q4 of FY10; Up by 18.96% from Q3 of FY10.

Net Profit Is Rs.667 Cr – down by 2.19% from Q2; Up by 13.04% from Q1; up by 26.19% from Q4 of FY10; and up by a huge 40.4% from Q3 of FY10.

Paid Up Equity   has increased to Rs.289.36 cr compared to Rs.144.68 cr in Q3 of FY10 – due to a 1:1 bonus issued by the company.

Basic EPS     is Rs.23.1 compared to Rs.23.6 in Q2 . EPS is Rs.32.8 on the lower equity in Q3 of FY10. This means, there has been a huge Jump in profitability in the current year.

Bajaj Auto Sales have been at all  time Highs in Dec and October 2010.

Bajaj Auto says –

…as we have gone from about 2.8 million vehicles last year to hopefully close to 4 million this year; we should put on another million for next year. Whether it is 4.7-4.8-4.9, it is something we have to still put our mind to but I would expect us to grow to around that number next year.

…In terms of three-wheelers, the traction is coming very significantly, both from the domestic as well as from the export markets for e.g. in the month of December we retailed 10,000 three-wheelers in Sri Lanka. We expect that such good news will come from other markets like Bangladesh, Egypt.

…The only problem is that all this growth comes in the four stroke three-wheelers for which our capacity is somewhat limited until the end of March. From January itself, I am hopeful that we are back at about 40,000 three-wheelers a month because we certainly have orders. We just have to produce it and definitely from April we should be above the 40,000 mark.

…Small Car - It is part of our next year’s capex and we have said we will launch in 2012 and as of now we are on course for that.

Judging by the continuing uptrend in sales and Management’s optimism in the future sales and expansion into small car segment etc – BAJAJ AUTO  is a  GOOD BUY at current prices. Overall, the entire 2-3-4 wheeler markets in India are in great up beat mood and capacity constraints are the limiting factor in many cases. The increase in raw material costs may be passed on by all players time to time. So, profitability of all players seems to be assured.

RESULTS IN NUMBERS :

BAJAJ AUTO	31-Dec-10	30-Sep-10	30-Jun-10	31-Mar-10	31-Dec-09
Net Sales	402818	418091	373729	329045	316584
Net Sales	4028	-3.65	7.78	22.42	27.24
Other Operatng Income	14890	16091	15277	10900	12971
Increase/decrease in SIT & WIP	3793	-3200	8689	-10063	4188
Raw Materials	278449	294274	255619	233728	210022
Traded Goods	16018	16045	12510	11771	11456
Employees Cost	10660	11415	12639	8619	9298
Depreciation	3102	2995	3182	3411	3568
Other Expenditure	23856	25931	21856	18442	22238
Total Expenditure	335878	347460	314495	265908	260770
Profit from Operations	81830	86722	74511	74037	68785
OPT	818	-5.64	9.82	10.53	18.96
Other Income	9946	8371	8167	4250	3513
Interest	36	65	63	-1	2
Profit before tax	91740	95028	82615	73705	67714
Tax expense	25029	26820	23600	20750	20200
Net Profit	66711	68208	59015	52865	47514
NPT	667	-2.19	13.04	26.19	40.4
Dividend (%)	-	-	-	400	-
Face Value.Rs	10	10	10	10	10
Paid Up Equity	28936	28936	14468	14468	14468
Basic EPS	23.1	23.6	40.8	36.7	32.8
Public holding (%)	50.27	50.26	50.26	50.3	50.27

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