BAJAJ AUTO Announces Quarterly Results (2QFY21); Net Profit Down 18.9%

Fri, 23 Oct

BAJAJ AUTO has announced its results for the quarter ended September 2020. Here is a detailed performance review of the same:

BAJAJ AUTO Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-19*	3 Jun-20*	3 Sep-20*	QoQ Change	YoY Change
Net Sales	Rs m	77,073	30,792	70,415	128.7%	-8.6%
Other income	Rs m	3,934	3,379	2,858	-15.4%	-27.4%
Turnover	Rs m	81,008	34,171	73,273	114.4%	-9.5%
Expenses	Rs m	64,285	26,708	58,901	120.5%	-8.4%
Gross profit	Rs m	12,788	4,084	12,657	209.9%	-1.0%
Depreciation	Rs m	613	638	643	0.8%	4.9%
Interest	Rs m	12	10	27	178.9%	113.7%
Profit before tax	Rs m	16,097	6,816	14,846	117.8%	-7.8%
Tax	Rs m	2,065	1,536	3,469	125.8%	68.0%
Profit after tax	Rs m	14,032	5,279	11,377	115.5%	-18.9%
Gross profit margin	%	16.6	13.3	18.0
Effective tax rate	%	12.8	22.5	23.4
Net profit margin	%	17.3	15.4	15.5

Year-on-Year Performance:

• The company's operating income during the quarter fell 8.6% on a year-on-year (YoY) basis. The expenses were down by 8.4% YoY during the same period.
• The company's operating profit declined by 1.0% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 18.0% in 2QFY21 as against 16.6% in 2QFY20.
• Depreciation charges increased by 4.9% and finance costs increased by 113.7% YoY, respectively.
• Other income declined by 27.4% YoY during the quarter.
• Net profit for the quarter declined by 18.9% YoY. Net profit margins during the quarter declined from 17.3% in 2QFY20 to 15.5% in 2QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 128.7% on a quarter-on-quarter (QoQ) basis. The expenses were up by 120.5% QoQ during the same period.
• The company's operating profit increased by 209.9% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 18.0% in 2QFY21 as against 13.3% in 1QFY20.
• Net profit for the quarter increased by 115.5% QoQ, while net profit margins increased from 15.4% in 1QFY20 to 15.5% in 2QFY21.

To see how BAJAJ AUTO has performed over the last eight quarters,please visit here.

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BAJAJ AUTO Share Price Performance

Over the last one year, BAJAJ AUTO share price has moved down from Rs 3,161.4 to Rs 3,009.3, registering a Loss of Rs 152.1 or around 4.8%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 17,774.4 (down 0.2%). Over the last one year it has moved down from 18,020.1 to 17,774.4, a gain of 246 points (down 1.4%).

Overall, the S&P BSE SENSEX is up 4.1% over the year.

Current Valuations

At the current price of Rs 3,009.3, the price to earnings (P/E) ratio of BAJAJ AUTO stands at 21.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 4.0 times.