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Bajaj Auto Q1 result | Profit rises 10.6% to Rs 1,173 crore, beats estimates all earnings parameters

Bajaj Auto Q1 result: Standalone revenue for the quarter Rs 8,005 crore, up 8.4 percent from the year-ago quarter but the sales volume declined 7.2 percent

July 26, 2022 / 02:33 PM IST
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Two and three-wheeler maker Bajaj Auto on July 26 clocked a 10.6 percent year-on-year growth in standalone profit at Rs 1,173.3 crore for the quarter ended June 2022, supported by strong operating profit and price hikes. Profit for the June 2021 quarter was at Rs 1,061.2 crore.

Standalone revenue for the quarter Rs 8,005 crore, up 8.4 percent from the year-ago quarter led by pricing and mix, the Pune-based auto company said in its BSE filing. However, the sales volume declined 7.2 percent.

Bajaj Auto has sold more than 9.33 lakh units during April-June period of this year, against 10.06 lakh units sold in same period last year, with two-wheeler volumes falling 6 percent and commercial vehicle segment volumes down 19 percent YoY.

"Sales in the quarter was significantly constrained by the inadequate availability of semi-conductors, although the situation improved in the latter part as new supply sources were developed," the company said.

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Quarterly earnings beat analysts' expectations on all parameters. Profit was estimated at Rs 1,049 crore on revenue of Rs 7,560 crore for the quarter as per the average of estimates of analysts polled by CNBC-TV18.

The operating performance was strong following price hikes taken by the company and better foreign exchange realisation. EBITDA grew by 15.82 percent year-on-year to Rs 1,297 crore for the quarter ended June 2022 and margin for the quarter expanded by 104 bps YoY to 16.2 percent, which came in ahead of CNBC-TV18 poll estimates which was pegged at Rs 1,195 crore and 15.6 percent respectively.

EBITDA is earnings before interest, tax, depreciation and amortisation.

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EBITDA growth and margin expansion was despite supply constraints, cost headwinds, and a weak macro-economic context, said Bajaj Auto, adding judicious price increases, better foreign exchange realisation and favourable mix offset the material cost inflation and enabled margin improvement.

However, gross margin fell by 200 bps YoY to 34.7 percent for the quarter ended June on account of higher input cost.

Bajaj Auto said it has sustained strong track record of cash generation, with surplus cash at Rs 20,509 crore as of June 2022, against Rs 19,090 crore as of March 2022.

The stock price was trading at Rs 3,957.85 on the BSE, down 1.5 percent at 14:30 hours IST.
Sunil Shankar Matkar
first published: Jul 26, 2022 02:11 pm
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