Bajaj Auto Share Slips On Flat Q4 Numbers

Bajaj Auto has announced its financial results for the fourth quarter and year ended on 31st March 2014. The topline of the company recorded marginal growth of 4% yoy during Q4FY14 and stood at Rs 4932 crore against Rs 4746 crore in Q4FY13. However, sale volume has recorded decline of 5.8% and came down to 935782 units in the said period from 993690 units in Q4FY13. But export revenue (stands for 42% of total net revenue) surprisingly went up by 30% to Rs 2076 crore in Q4FY14 from Rs 1597 crore in Q4FY13.

The company was able to record marginal growth in topline during the said quarter on account of increase in export revenue and income from other operation, which showed sharp increase in numbers and went up by 15% to Rs 110 crore in Q4FY14.

EBITDA of the company showed a decent growth during the said quarter on account of cost optimisation and went up by 11% to Rs 931 crore in Q4FY14 against Rs 836 crore in same period last year. Cost of material for the company came down to 65% of total net revenue in Q4FY14 from 69.4% in Q4FY13. However, other major expenses like employee cost, traded goods remain constant during the said quarter.

Further cost optimisation for the company has resulted in better realization for the company as its EBITDA margin improved to 20.6% in Q4FY14 from 18.9% in Q4FY13.

However, bottomline of the company marginally dropped by 2% to Rs 763 crore in Q4FY14 against Rs 765 crore in same period of last quarter. This was mainly due to drop in other income of the company that came down by 24% to Rs 184 crore in Q4FY14 from Rs 244 crore in Q4FY13.
The company has recommended a dividend of Rs 50 per share just after announcement of results.

The company has put up a satisfactory performance for FY'14. Its topline recorded marginal increase and stood at Rs 20856 crore in FY'14 against Rs 20793 crore in same period last year. However, sales volume dropped by 8.6% yoy to 38.7 million unit form 42.4 million units in FY'13. One notable thing during the year was that its export revenue grew by 22% to Rs 8199 crore in said period from Rs 6713 crore in last fiscal year. Moreover, its operating EBITDA went up by 13.5% and stood at Rs 4382 crore in FY'14 against Rs 3861 crore in FY'13. Further topline of the company grew by 6.5% and reached to 3243 crore in FY'14 from Rs 3044 crore in last fiscal year.

At CMP of Rs 1953.20 per share the stock is trading at 17.4x of its trailing 12-months earning.