BAJAJ AUTO LTD - 2ND QUARTER RESULTS (SEP’2014) - SALES UP 9.8% SALES IN VALE UP 15% - 2/3 WHEELER SECTOR MAY PICK UP IN 3/4 QTRS

BAJAJ AUTO LTD

2^ND QUARTER RESULTS

(SEP’2014)

Bajaj Auto 's second quarter (July-September) RESULTS are unimpressive. 

Sales in numbers has of course grown 7% QoQ and 9.8% YoY.Net Sales in value has risen by 14% QoQ and 15% YoY.

But its net profit fell 29.4 percent to Rs 591 crore – due to a one-time liability of Rs 340.29 cr, related to national calamity contingent duty (NCCD). Profit in the year-ago period was Rs 837.1 crore. On one-time liability, the company said it had filed a writ petition before the Uttarakhand High Court in October 2011, claiming benefit of exemption from payment of NCCD by Pantnagar plant. 

On October 9, 2014, the court ruled otherwise, it added. Accordingly, the company recognised liability for the last seven and a half years (April 1, 2007 to September 30, 2014) aggregating to Rs 340.29 crore. This is a one time only charge. 

Going forward, the monthly charge towards NCCD is expected to be around Rs 3 crore per month, Bajaj Auto said. If one ignores exceptional item, profit after tax would have been at Rs 853 crore for the quarter. Even so, the net profit is unimpressive compared to Rs.837.16 cr in the corresponding Quarter of last year.

However, the whole 2 / 3 wheeler sector can expect to pick up in the 2nd half well.

S Ravikumar, president (business development) Bajaj Auto, said, “We will consult our legal team on whether or not to appeal (against the high court ruling) in the Supreme Court. We have not received a copy of the final order yet.”

It is learnt that Other manufacturers operating in Uttarakhand, including Hero MotoCorp, have either appealed against the NCCD charge or have been paying this regularly. Other manufacturers, too, enjoy a tax holiday of 10 years in that state.

While other 2 wheeler manufacturers are diversifying into scooter segment as well, the one-time numero Uno in scooters, Bajaj Auto is sticking to Motor cycles segment and 3 wheelers only now.

RESULTS TABLE

Particulars	Q2 FY 15	Q1 FY 15	Dif% QoQ	Q2 FY 14	Dif % YoY
Sales in numbers	1055582	988,430	7	961330	9.8
Income from operations
(a) Gross sales	6054.32	5,334.71	13	5334.25	13.5
Less: Excise duty	227.47	201.34	13	272.76	-16.6
Net sales	5826.85	5,133.37	14	5061.49	15.12
(b) Other operating income	136.24	119.04	14	113.4	20.14
Total income from operations (net)	5963.09	5,252.41	14	6174.89	-3.43
Total expenses	4904.93	4,396.48	12	4087.22	20.01
Profit from operations	1058.16	855.93	24	1087.67	-2.71
Other income (See note 1 and 2)	113.61	219.27	-48	124.16	-8.5
Profit before tax	1171.12	1,075.09	9	1211.79	-3.36
Tax expense	240.53	335.11	-28	374.64	-35.8
Net Profit	590.9	739.98	-20	837.16	-29.42
Paid-up equity (FV-10)	289.37
EPS	20.4	25.6	-20	28.9	-29.41

OPERATING PERFORMANCE : FIRST HALF 

Product	For September 2014	Upto September 2014	For September 2013	Upto September 2013
Motorcycles	347,010	1,774,011	323,879	1,709,441
Three Wheelers	52,440	270,001	43,936	231,164
Grand Total	399,450	2,044,012	367,815	1,940,605

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BAJAJ AUTO LTD - RESULTS - FOR Q3 FY 2012-13 - Q/E DEC, 2012 - Net Sales up 9.65%; Net Profit up 2.96% YoY

BAJAJ AUTO LTD

RAJIV BAJAJ, CEO & MD

RESULTS FOR Q3 FY 2012-13

Q/E DEC, 2012

BAJAJ AUTO has reported good Results for the third Quarter ending December, 2012.

Net Sales for Q3 FY 2013 stands at Rs.5307.20 Cr; compared to  Rs.4817.07 Cr in Q2 FY 13 (+10.17%); and Rs.4839.95 Cr in Q3 FY 13 (+9.65% YoY).

For 9 m/e Dec,2013, the Net sales stands at Rs.15,250,77 against Rs.14,877.54 for 9 m/e Dec,2012. The growth for 9 months of FY 13 is just 2.5% over corresponding period of previous year. This indicates the sluggish growth during current year.

Product	For Dec 2012	Upto Dec 2012	For Dec 2011	Upto Dec 2011	Upto Dedc %dif YoY	For Dec % dif YoY
Motorcycles	298,350	2,897,410	263,699	2,937,157	-1.35	13.14
Three Wheelers	45,596	358,510	41,991	395,236	-9.29	8.59
Grand Total	343,946	3,255,920	305,690	3,332,393	-2.29	12.51

If we compare the Sales in Numbers,  for 9 months ended Dec,2012, Sales were actually down by 1.35% for Motor cycles and 9.29% down for 3- wheelers. Overall Numbers are down by 2.29%. But, for the month of December itself, there is a rise of 13.14 % in 2 wheelers and 8.59% in 3- wheelers.

For Q3 FY 13, sales in total are 1,127,741, whereas, for Q2 FY 13, the same was 1,049,208 and for Q3 FY 12, the same was 1,075,441.The quarterly growth in numbers is 4.86%, while the growth in terms of Rupees is 9.65%.

Total Expenditure for Q3 FY 2013 stands at Rs.4442.04 Cr; compared to  Rs.4098.23 Cr in Q2 FY 13 (+8.39%); and Rs.4033.90 Cr in Q3 FY 13 (+10.12%). The expenditure has risen more than proportionately compared to Sales.

Profit before Interest, Dep. & Taxes for Q3 FY 2013 stands at Rs.865.16 Cr; compared to  Rs.718.84 Cr in Q2 FY 13 (+20.36%); and Rs.806.05 Cr in Q3 FY 13 (+7.33%).

Net Profit    for Q3 FY 2013 stands at Rs.818.74 Cr; compared to  Rs.740.67 Cr in Q2 FY 13 (+10.54%); and Rs.795.19 Cr in Q3 FY 13 (+2.96%). Profit YoY has thus risen by only 2.96%, because of more than proportionate growth in expenditure.

Diluted EPS            for Q3 FY 2013 stands at Rs.28.3;compared to Rs.25.6 in Q2 FY 13 and Rs.27.5 in Q3 FY 12. The Growth in EPS is marginal.

Cost of materials for Q3 FY 2013 stands at Rs.3582.86 Cr; compared to  Rs.3446.23 Cr in Q2 FY 13 (+3.96%); and Rs.3356.24 Cr in Q3 FY 13 (+6.75%).

Purchases of S-I-T for Q3 FY 2013 stands at Rs.205.33 Cr; compared to  Rs.212.64 Cr in Q2 FY 13 (-3.44%); and Rs.203.99 Cr in Q3 FY 13 (+0.66%).

Employee expense         for Q3 FY 2013 stands at Rs.159.23 Cr; compared to  Rs.153.22 Cr in Q2 FY 13 (+3.92%); and Rs.132.04  Cr in Q3FY13 (+20.59%).

Depreciation         for Q3 FY 2013 stands at Rs.41.08 Cr; compared to  Rs.41.04 Cr in Q2 FY 13 (+0.1%); and Rs.32.14 Cr in Q3 FY 13 (+27.82%).

Other expenses   for Q3 FY 2013 stands at Rs.320.66 Cr; compared to  Rs.335.34 Cr in Q2 FY 13 (-4.38%); and Rs.306.11 Cr in Q3 FY 13 (+4.75%).

Total expenses    for Q3 FY 2013 stands at Rs.4442.04 Cr; compared to  Rs.4098.23 Cr in Q2 FY 13 (+8.39%); and Rs.4033.90 Cr in Q3 FY 13 (+10.12%).

Profit  before tax for Q3 FY 2013 stands at Rs.1173.76 Cr; compared to  Rs.1040.67 Cr in Q2 FY 13 (+12.79%); and Rs.1061.19 Cr in Q3 FY 13 (+10.61%).

Tax Expenses       for Q3 FY 2013 stands at Rs.355.02 Cr; compared to  Rs.300.00 Cr in Q2 FY 13 (+18.34%); and Rs.        266.00 Cr in Q3 FY 13 (+33.47%). While PBT has risen by 10.61% YoY, the higher tax burden which has risen by 33.47% has reduced after tax profit growth to only 2.96%.

Face Value of Share is Rs.10 and Paid-up Equity stands at Rs.289.37 Cr.

Basic EPS    for Q3 FY 2013 stands at Rs.28.3; compared to Rs.25.6 in Q2 FY 13; and Rs.27.5 in Q3 FY 12.    

Public holding in the company stands at 49.98%.

Bajaj Auto has improved its domestic market share to 26.2% this quarter compared with 25.1% a year ago. However, margins slipped to 20.1% in Q3 from 21% a year ago.

In six months of the launch of 125cc Discover ST, Bajaj Auto has sold over 2 lakh units and 51,000 units of Pulsar NS.

“We saw a strong growth in volumes despite slow industry sales on account of differentiated products and a brand-centric strategy,” says the company.

The company hopes to continue the momentum in Q4 also on the back of new launches. Bajaj Auto, recently expanded its Discover family with the new Discover 100T.

The company recorded its highest-ever sales of commercial vehicles (three-wheelers) – over 141,000 units —during the quarter. It recorded a growth of 23% in domestic market, higher than the industry growth of 13%.

Exports, which contribute almost a third to the company’s turnover, increased in regions such as Africa and Egypt, but were subdued in South Asia.

“We will be looking at more countries for exports, which will offset the slow sales in the South Asian region. We will expand in African and Latin American regions,” says the Company.

For the ongoing quarter, the company expects the two-wheeler demand to remain subdued.

It is hoping for a strong fiscal 2014 as it expects dollar realisation to add additional 3% to profit.

“We will use this additional amount in taking our plans forward and expanding in newer markets,” says the company.

While the indigenous 2 wheeler Majors, Bajaj Auto and Hero Moto are struggling to expand their sales in India, the  Honda 2 wheeler manufacturer seems to be doing better:

HMSI SALES FIGURES :

Two-wheeler manufacturer Honda Motorcycle & Scooter India (HMSI) reported 13.59 % growth in its total sales for December 2012 at 2,17,612 units. The company's total sales stood at 1,91,584 units in the corresponding month of the previous year.

Motorcycle sales jumped 35.03 per cent to 1,06,297 units in December last year as against 78,721 units in December 2011. The company, however, reported 1.37 per cent decrease in its scooter sales at 1,11,315 units from 1,12,863 units in December 2011, it said. This  Late starter is thus racing forward in its sales numbers strongly – to give a good fight to the Industry Majors.

RESULTS TABLE

BAJAJ AUTO	31-Dec-12	30-Sep-12	%dif QoQ	30-Jun-12	31-Mar-12	31-Dec-11	%Dif YoY
Net Sales	530720	481707	10.17	471364	451555	483995	9.65
Total Expenditure	444204	409823	8.39	402920	377431	403390	10.12
Profit before Intt, Dep. & Taxes	86516	71884	20.36	68444	74124	80605	7.33
Net Profit	81874	74067	10.54	71839	77200	79519	2.96
Diluted EPS	28.3	25.6	10.55	24.8	26.7	27.5	2.91
Changes in inventories of f/g, w-i-p, s-i-t	13288	-9024	-247.25	11555	-17077	338	3831.36
Cost of materials	358286	344623	3.96	320076	331198	335624	6.75
Purchases of SIT	20533	21264	-3.44	19173	17144	20399	0.66
Employee expense	15923	15322	3.92	16040	11956	13204	20.59
Depreciation	4108	4104	0.1	3524	4342	3214	27.82
Other expenses	32066	33534	-4.38	32552	29868	30611	4.75
Total expenses	444204	409823	8.39	402920	377431	403390	10.12
Profit  before tax	117376	104067	12.79	101839	103512	106119	10.61
Tax Expenses	35502	30000	18.34	30000	26312	26600	33.47
Face Value of Share (Rs )	10	10	0	10	10	10	0
Paid-up Equity	28937	28937	0	28937	28937	28937	0
Basic EPS	28.3	25.6	10.55	24.8	26.7	27.5	2.91
Public holding (%)	49.98	49.98	0	49.98	49.92	49.91	0.14

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