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Bajaj Auto Q4 results: Profit rises 10% to Rs 1,469 cr, beats estimates

By Priyanka Verma 
Updated Date

NEW DELHI: Bajaj Auto on Wednesday, April 27, said its standalone net profit for the quarter ended March stood at Rs 1,468.95 crore, up 10.27 per cent over Rs 1,332.07 crore that it reported in the year ago quarter.

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The higher profit was mainly due to an exceptional item of ₹315 crore accrued as incentive receivable from the Maharashtra government under an incentive scheme.

On Wednesday, Bajaj Auto shares closed marginally higher at ₹3,898.60 apiece on NSE.

The company’s EBITDA (earnings before interest, tax, depreciation and amortisation) fell 10% to ₹1,396 crore, while margins shrank to 17.5%.

Sequentially, EBITDA margin improved from 15.6% in Q3, largely for positive impact of price increase, deferral of material cost increase, improved US dollar realisation and favourable sales mix.

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Revenue from operations, however, fell 7% to ₹7,975 crore for the period under review. The board of directors of the company recommended a dividend of Rs 140 per share. Total payout towards dividend would amount to Rs 4,051 crore, the company said.

As on March 31, 2022, surplus cash and cash equivalents stood at Rs 19,090 crore as against Rs 17,689 crore as on March 31, 2021, after a dividend payout of Rs 4,051 crore.

The company said it continues to face severe supply chain challenges, especially in Q4FY22, impacting sales of motorcycles and commercial vehicles.

“Domestic commercial vehicle business recorded a growth of 47 per cent as against industry growth of 21 per cent. As a result share in domestic market stands at 62 per cent (improved by 10.9 per cent over FY21). International business recorded its highest ever sales of over 2.5 million vehicles for FY22. With sales of over $2 billion, exports now contribute over 52% of our net sales,” said the firm said.

“Bajaj Auto reported healthy operational performance despite subdued volumes in 4QFY22. We expect its export business to witness a healthy growth in FY23E on the back of positive traction in the African market. We also expect the domestic 2W industry to recover gradually going forward in FY23, while its domestic 3W business would bounce back strongly in FY23E respectively,” said Mitul Shah – Head of Research at Reliance Securities.

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“In view of healthy exports, recovery in high margin 3W business, margin expansion, improving return ratio and strong balance sheet, we have a BUY rating on Bajaj Auto with a 1-Yr Target Price of Rs 4,250, while post-management call, we may revisit our estimates and target price.”

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