Result Update

Bajaj Auto: Tad lower than street expectations

Bajaj Auto Ltd. reported a 20.5% yoy growth in net profit to Rs 711 crore while net revenues grew
22.7% yoy to Rs 4586.6 crore. Both turnover & exports volumes were the highest ever, with
handsome growth from both motorcycles (30%) and three wheelers (+42%) segments. Products
Pulsar, Discover and Discover 125 were the engines of growth and concentration on these helped
boost top line and manage the margins in the high cost inflation environment. Despite this,
EBIDTA margins at 19.1% were 90 bps lower than the expected 20% (guided by the management)
as CoGS of RM and components increased 140 bps to 72.6%. In value terms, exports grew 40%
yoy to Rs 1688 crore. We expect growth trend in two and three wheeler to remain robust over the
medium term we recommend Accumulate on the stock. Currently the stock is valued at 13x / 12.5x
on FY12 / FY13 earnings.
Post the conference call we expect to come out with a detailed note on the quarterly result
analysis.

Quarterly Net Sales, EBITDA & PAT Margins

14-Jul-2011
CMP: 1430.9
Rating:

Nifty: 5599.8

Accumulate

Sector:

Automobile Two & Three

Wheelers

Equity Cap (Rs Cr):

289.4

Face Value:

10

52 Week High:

1665

52 Week Low:

1165.65

Market Cap (Rs Cr): 41410.2

Price Chart

Shareholding Pattern:

Result Update

Quarterly Sales Performance

Bajaj Auto

Jun-11

Jun-10

YOY %

Mar-11

QOQ %

YTD FY12

YTD FY11

YOY %

Motorcycles

963,051

828,391

16.3

836,668

15.1

963,051

828,391

16.3

27

27

-100.0

963,051

828,418

16.3

836,668

15.1

963,051

828,418

16.3

129,764

99,918

29.9

111,527

16.4

129,764

99,918

29.9

1,092,815

928,336

17.7

948,195

15.3

1,092,815

928,336

17.7

Domestic

665,451

604,437

10.1

672,352

-1.0

665,451

604,437

10.1

Exports

427,364

323,899

31.9

275,843

54.9

427,364

323,899

31.9

Scooters
Total 2 wheelers
3 wheeler
Total sales

Result Update
(Rs. In Cr.)
Bajaj Auto Ltd

Net Sales
Other operational Income
Total Oper. Income(TOI)
Raw Materials Cons.% to TOI
Stock adj. (-)Inc / (+)Dec% to TOI
Net Raw Mat adj. for stock
% to TOI
Other expenses
% to TOI
Contribution Net_Sales
Personnel
% to TOI
Total expenditure
Operating Profit
% to TOI

Non-Operating Income
Interest
Exceptional Items
Gross Profit
Depreciation
PBT before Extra-ord
% to TOI
Extraordinary Items
PBT
Tax Rate
Prov. for Tax
% to TOI
Profit after Tax
% to TOI

Face Value
Equity Share capital
EPS (Rs.)
CEPS (Rs.)
Source: ACE Equity

Q1FY12
4586.9

Q1FY11
3737.3

% Chg.
22.7

Q1FY12
4586.9

Q4FY11
4051.7

% Chg.
13.2

FY201103
15998.1

FY201003
11508.5

% Chg.
39.0

190.4

152.8

24.6

190.4

148.2

28.4

610.8

412.5

48.1

4777.3

3890.1

22.8

4777.3

4200.0

13.8

16608.9

11921.0

39.3

3175.4

2556.2

24.2

3175.4

3029.8

4.8

11313.2

7698.2

47.0

66.5%

65.7%

66.5%

72.1%

68.1%

64.6%

114.8

86.9

32.1

114.8

-175.6

LP

-82.8

-47.6

73.9

2.4%

2.2%

2.4%

-4.2%

-0.5%

-0.4%

3290.2

2643.1

24.5

3290.2

2854.2

15.3

11230.4

7650.6

46.8

68.9%

67.9%

68.9%

68.0%

67.6%

64.2%

437.4

343.7

27.3

437.4

354.7

23.3

1516.8

1278.3

18.7

9.2%

8.8%

9.2%

8.4%

9.1%

10.7%

1049.7

903.3

16.2

1049.7

991.1

5.9

3861.7

2992.0

29.1

138.9

126.4

9.9

138.9

129.6

7.1

476.8

399.5

19.4

2.9%

3.3%

2.9%

3.1%

2.9%

3.4%

3866.5

3113.1

24.2

3866.5

3338.5

15.8

13224.0

9328.4

41.8

910.8

776.9

17.2

910.8

861.5

5.7

3384.9

2592.6

30.6

19.1%

20.0%

19.1%

20.5%

20.4%

21.8%

73.1

81.7

-10.5

73.1

101.0

-27.6

365.8

122.5

198.6

0.2

0.6

-63.5

0.2

0.1

360.0

1.7

6.0

-71.7

724.6

0.0

724.6

-161.5

LP

983.7

858.0

14.7

983.7

1687.0

-41.7

4473.6

2547.6

75.6

30.6

31.8

-3.7

30.6

30.1

2.0

122.8

136.5

-10.0

953.1

826.2

15.4

953.1

1656.9

-42.5

4350.8

2411.1

80.4

20.0%

21.2%

20.0%

39.5%

26.2%

20.2%

0.0

0.0

0.0

953.1

826.2

15.4

953.1

1656.9

-42.5

4350.8

2411.1

80.4

25.4%

28.6%

25.4%

15.5%

23.2%

29.3%

242.0

236.0

2.5

242.0

256.5

-5.7

1011.0

707.5

42.9

5.1%

6.1%

5.1%

6.1%

6.1%

5.9%

711.1

590.2

20.5

711.1

1400.4

-49.2

3339.7

1703.6

96.0

14.9%

15.2%

14.9%

33.3%

20.1%

14.3%

10.0

10.0

0.0

10.0

10.0

10.0

10.0

0.0

289.4

144.7

100.0

289.4

289.4

0.0

289.4

144.7

100.0

24.6

40.8

-39.8

24.6

48.4

-49.2

115.4

117.8

-2.0

25.6

43.0

-40.4

25.6

49.4

-48.2

119.7

127.2

-5.9

0.0

Result Update

Source: ACE Equity

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