Bajaj Auto Posted Q4 Results

Bajaj Auto (BAL) is Bajaj group's flagship company has headquarter in Pune. The company is world's fourth largest manufacturer of scooters, motorcycles and three-wheeler vehicles and spare parts. Bajaj brand is well known across several countries in Latin America, Africa, Middle East, South and South East Asia. BAL has manufactring facilities at Waluj, Chakan in Maharashtra and Pant Nagar in Uttranchal. 

BAL's net sales volume reduced by 16.36 per cent to 782669 vehicles in Q4FY15 on yearly basis. Therefore revenue of the company decreased by 3.91 per cent and stood at Rs 4739 crore in Q4FY15 against Rs 4932 crore in Q4FY14. BAL's gross sales contributed mainly 98.71 per cent amount to Rs 4830 crore from automotive segment and remaining from investment segment in Q4FY15. Interestingly, the volume of commercial vehicles sales increased by 58 per cent to 50483 during April 2015 on yearly basis. Hence Q1FY16 revenue will be better. Total expenditure of BAL decreased by 2.48 per cent to Rs 3902 crore in Q4FY15 on yearly basis. Total expenditure reduced largely due to a 5.96 per cent reduction in raw material prices during the same period. However, there were a 47.96 per cent increment in employee expenses, a 14.72 per cent in other expenses during the same period.

EBITDA of BAL decreased by 10.05 per cent in Q4FY15 and stood at Rs 838 crore against Rs 931 crore in Q4FY14. The company's EBITDA margin contracted by 121 basis points to 17.68 per cent in Q4FY15 on yearly basis. Its EBIT was reduced by 12.73 per cent to Rs 774 crore in Q4FY15 on yearly basis as depreciation expense for the company increased by 43.46 per cent to Rs 64 crore during the same period. BAL's PAT decreased by 18.48 per cent from Rs 763 crore in Q4FY14 to Rs 622 crore in Q4FY15 because other income reduced by 16.53 per cent to Rs 154 crore during the same period. PAT margin of the company decreased by 234 basis points to 13.12 per cent in Q4FY15 on yearly basis. The reduction in margins predominantly due to a 190.32 per cent increment in acturial valuation for gratuity expenses to Rs 90 crore in Q4FY15 on yearly basis.

Considering full year result, Net sales of the BAL increased by 7.22 per cent from Rs 20158 crore in FY14 to Rs 21614 crore in FY15 becasue export revenue increased by 19.01 per cent to Rs 9758 crore. The company exported 1.5 million motorcycles and 284000 three-wheelers during the same period. However, total vehicles volume of the company reduced by 1.52 per cent to 3811201 in FY15 on yearly basis. Its total expenditure increased by 9.36 per cent to Rs 17501 crore in FY15 compared to previous financial year. The increamnet in total expenditure primarily due to a 26.15 per cent increment in other expenses, a 22.78 per cent increment in employee cost, a 6.31 per cent increment in raw material prices during the same period.

BAL's EBITDA decreased by 1.01 per cent and stood at Rs 4113 crore in FY15 due to operational inefficiency on yearly basis. EBITDA margin of the company reduced by 158 basis points to 19.03 per cent in FY15. Its EBIT too decreased by 3.22 per cent to Rs 3846 crore in FY15 on yearly basis because the company reworked on depreciation policy depending upon useful life of fixed assets therefore depreciation expense increased by 47.51 per cent to Rs 267 crore during the same period. PBT of BAL also decreased by 12.29 per cent to Rs 4083 crore in FY15 on yearly basis due to one time exceptional expense of Rs 340 crore of Pantnagar plant towards National Calamity Contingent Duty for last seven and half years and a 14.35 reduction in other income amounts to Rs 584 crore during the same period. Net profit of the company reduced by 10.49 per cent from Rs 3380 crore in FY14 to Rs 3026 crore in FY15 as tax expense reduced by 10.61 per cent to Rs 1271 crore. Its Net profit margin decreased by 277 basis points to 14 per cent in FY15 on yearly basis.

Total gross sales of BAL contributed 98.3 per cent amount to Rs 21821 crore from automotive segment and remaining from investment segment in FY15 compared to previous financial year. The company faced many issues such as devaluation of local currency, state elections in Nigeria, availability of US$ for imports and other macroeconomic uncertainties during the year. The company improved its market share of motorcycle segment across South Asia, Middle East, Latin America and Africa in FY15.

BAL shareholding pattern indicates FII holding is decreased by 177 basis points to 16.99 per cent and DII holding increased by 165 basis points to 8.65 per cent during March 2015 quarter.

BAL is about to launch a bunch of new products such as Pulsar RS200,Pulsar AS200, Pulsar AS150, Pulsar CS400, PulsarSS400, 2015 CT 100 and new Platina in FY16. Bajaj RE60 car is also upcoming  launch in current fiscal.