The commercial vehicle segment continued to remain under stress and management expects it to continue for 8 to 9 months.
Total income for the quarter declined to Rs 1,790.17 crore as against Rs 1,835.02 crore and total expenses increased to Rs 1,534.36 crore, from Rs 1,446.82 crore, YoY.
Total income rose by 35 percent to Rs 2,313 crore from Rs 1,717 crore in the year-ago period.
The new product developed in collaboration with M&M will bring synergies to the organization.
The CAPEX for 9MFY20 stood at Rs 300 crore, for the full year- CAPEX is expected to be Rs 450-500 crore.
The company’s volume growth stood at 10 percent YoY impacted on account of late monsoons.
Net interest income (NII) of the company rose 25.7 percent at Rs 3,134.6 crore against Rs 2,494.2 crore, YoY.
Total revenue from operations came in at Rs 2,982.7 crore, up 4.95 percent YoY, against Rs 2,842 crore.
Earnings before interest, tax, depreciation and amortisation (EBITDA) up 9.9 percent at Rs 541.6 crore, while margin was at 21.1 percent, YoY.
Demand may improve from April 1, 2020 once the transition from BS IV to BS VI is complete. The management stated that the second hand car demand has reached its peak which suggests the demand will improve for new cars in domestic market
The company is in process of acquiring 51 percent shareholding of Shraddha Dingnostic Centre Pvt Ltd for providing diagnostic and pathological testing services in Ahmedabad, Gujarat.
Plant load factor (PLF) for coal during Q3FY20 is 63.48 percent as against 77.7 percent in Q3FY19 and 64.28 percent in Q2FY20.
In the US market, the company is planning to file 12-15 products, and launch lower double digit products every year going ahead.
The company expects to launch more than 15 products in US in FY21.
Revenue of the company increased 16.1 percent at Rs 3,073.1 crore versus Rs 2,646.6 crore.
The top 3 products of the US business contributed around 25-30 percent to the overall US revenues.
Q4FY20 industry appears to be challenging, primary because of the declining GDP.
Pre-buying is expected to happen in Q4FY20, January month didn't see much pick-up.
The deal signed in 3Q will see some addition cost impact in 4Q.
The company may take price increase in a range of 5-6% across Soap portfolio in next couple of months to counter input inflation.
The agri sector will continue to drive growth whereas Infrastructure sector may take some time to recover (35-40 percent of sales).
Consumer B2B sales finance had a slow quarter as the company witnessed significant slowdown in consumption categories. This was in addition to cautious stance in digital products financing.
The company is making tailor made products for different channels to take the problem of price disparity across the channel, the management said.
Overall demand scenario has not picked up significantly, though last week of January saw some uptick in sales, largely attributed to pre-buying, Bajaj Auto management said.
The management expects commodity cost to rise from Q1FY21, with increased used of precious metals in BS-VI engine.