Bajaj Auto Q4: Revenue and Profit beat estimates, Dividend declared

Profit declines: Bajaj Auto has reported a 2% decline in consolidated net profit to Rs 1,526 crore. However, on standalone basis it reported a 10% on-year jump in net profit to Rs 1,469 crore, beating analyst expectations. The higher profit was mainly due to an exceptional item of ₹315 crore accrued as incentive receivable from state govt. Analysts had earlier estimated a profit of about Rs 1,203 crore.

Revenue decline: Bajaj Auto’s revenue from operations fell 7% YoY to Rs 7,974.84 crore from Rs 8,596 crore in the same quarter a year ago. Analysts had earlier estimated revenue of about Rs 7,621 crore. 

Volumes decline: There has been a 17% on-year decline in Bajaj Auto’s overall volume to 9.76 lakh units as compared to 11.69 lakh units in the previous year. The company said that the domestic two-wheelers market industry recorded a decline of 30% YoY. The two-wheeler exports declined by 8% in Q4FY22 compared to Q4FY21. The domestic Commercial Vehicle business recorded a growth of 47% against industry growth of 21%.

Dividends: 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.

Margins decline: Bajaj Auto’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) fell 10% on-year to Rs 1,405 crore. The EBITDA margin declined year-on-year to 17.5%. It was 15.6% in the Oct-Dec 21 period and 18.1% in the same quarter last year. 

Cash and cash equivalents: The company reported surplus cash and cash equivalents stood at Rs 19,090 crore as against Rs 17,689 crore as of 31st March 2021, after a dividend payout of Rs 4,051 crore.

Management commentary:  “The share in the domestic market stands at 62%. The 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." the company said.

Bajaj Auto Share price closed 0.17% lower at Rs 3898.60 per share.