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Company Report

BAJAJ AUTO

Riding high on a 6 per cent volume growth powered mainly by motorcycles, Bajaj Auto ended the year with a total income of Rs 4,481.30 crore (Rs 3,877.11 crore), up 16 per cent from the previous year.

Against this the total costs of the company went up by 14 per cent to Rs 3,942.88 crore (Rs 3,473.02 crore) resulting in a 33 per cent rise in the net profits (excluding extraordinaries). Net sales for the year at Rs 4,336.31 crore (Rs 3,716.95 crore) were up by 17 per cent over the previous year. Overall sales volumes were up 6 per cent.

At Rs 3,520.41 crore (Rs 3,106.27 crore) the operational expenditure went up by 13 per cent over the previous year.

At Rs 815.90 crore (Rs 610.68 crore) the operating profits were up 34 per cent over last year, while OPM shot up to 19 per cent from 16 per cent during the year-ago period.

Other income has been declining and at Rs 144.99 crore (Rs 160.16 crore) the same was 9 per cent down from the year-ago period.

Depreciation was down 5 per cent at Rs 171.15 crore (Rs 179.69 crore). Net profit rose 33 per cent over the previous year to Rs 538.42 crore (Rs 404.09 crore). The company has written off Rs 3.79 crore on account of prior period adjustments against a write back of Rs 114.07 crore during last year, which, if considered, would bring down the profit growth to just about 3 per cent.

A severe slowdown has hit Bajaj Auto in the fourth quarter where net sales have managed to rise by 11 per cent over the corresponding previous quarter (down 3 per cent sequentially) at Rs 1,092.34 crore (Rs 988.36 crore).

Operating profit was down 10 per cent over the corresponding previous quarter and 9 per cent sequentially at Rs 197.89 crore (Rs 220.25 crore).

OPM shrank to 18 per cent against the 22 per cent it reported during the corresponding previous period and 19 per cent in the preceding quarter. A higher other income and lowered tax provisioning has been the saving grace for Bajaj in the fourth quarter.

But even with that the net profits managed to rise by just about 1 per cent over the year-ago period and 12 per cent sequentially to Rs 150.61 crore (Rs 148.45 crore).

The stock, currently trading at Rs 477, discounts its full year EPS of Rs 53.21 by nine times. Fully valued unless growth picks up in the June quarter.

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