BAJAJ AUTO Announces Quarterly Results (3QFY21); Net Profit Up 23.3%

Fri, 22 Jan

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

BAJAJ AUTO Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	76,397	70,415	89,099	26.5%	16.6%
Other income	Rs m	3,662	2,858	3,692	29.2%	0.8%
Turnover	Rs m	80,059	73,273	92,791	26.6%	15.9%
Expenses	Rs m	62,726	58,901	71,812	21.9%	14.5%
Gross profit	Rs m	13,671	12,657	17,287	36.6%	26.4%
Depreciation	Rs m	617	643	650	1.1%	5.4%
Interest	Rs m	5	27	10	-61.5%	117.0%
Profit before tax	Rs m	16,712	14,846	20,318	36.9%	21.6%
Tax	Rs m	4,097	3,469	4,765	37.4%	16.3%
Profit after tax	Rs m	12,615	11,377	15,553	36.7%	23.3%
Gross profit margin	%	17.9	18.0	19.4
Effective tax rate	%	24.5	23.4	23.5
Net profit margin	%	15.8	15.5	16.8

Year-on-Year Performance:

• The company's operating income during the quarter grew 16.6% on a year-on-year (YoY) basis. The expenses were up by 14.5% YoY during the same period.
• The company's operating profit increased by 26.4% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 19.4% in 3QFY21 as against 17.9% in 3QFY20.
• Depreciation charges increased by 5.4% and finance costs increased by 117.0% YoY, respectively.
• Other income increased by 0.8% YoY during the quarter.
• Net profit for the quarter increased by 23.3% YoY. Net profit margins during the quarter increased from 15.8% in 3QFY20 to 16.8% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 26.5% on a quarter-on-quarter (QoQ) basis. The expenses were up by 21.9% QoQ during the same period.
• The company's operating profit increased by 36.6% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 19.4% in 3QFY21 as against 18.0% in 2QFY20.
• Net profit for the quarter increased by 36.7% QoQ, while net profit margins increased from 15.5% in 2QFY20 to 16.8% in 3QFY21.

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 up from Rs 3,077.3 to Rs 4,089.0, registering a Gain of Rs 1,011.7 or around 32.9%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 23,994.6 (up 2.7%). Over the last one year it has moved up from 18,348.9 to 23,994.6, a gain of 5,646 points (up 30.8%).

Overall, the S&P BSE SENSEX is up 18.1% over the year.

Current Valuations

At the current price of Rs 4,089.0, the price to earnings (P/E) ratio of BAJAJ AUTO stands at 26.7 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 5.5 times.