A billion-dollar corporation with no debt that has sold over 18 million motorcycles in over 70 countries. Bajaj is India’s leading motorbike exporter, with two out of every three bikes exported abroad bearing the Bajaj logo.
Bajaj Auto was the first two- and three-wheeler firm in the world to reach a market value of INR one trillion, and it continues to be the most valuable two- and three-wheeler company in the world.
Bajaj Auto Q4 Results 2022 – Highlights
- The Pune-based company continues to confront severe supply chain issues, which are affecting motorcycle and commercial vehicle sales, particularly in Q4 FY22. The percentage of bikes sold in the domestic market increased to 18.2 percent for the full year.
- The Board of Directors has approved a dividend at the rate of Rs 140 per share (1400 percent) of the face value of Rs 10 each on equity shares for the financial year ended March 31, 2022.
- Bajaj Auto’s Net Income rose by 6.7% in Q4-22, from Rs 1429 crore in Q3-22 to Rs 1526 crore in Q4-22. While Revenue of the company fell by 11.6% from Rs 9021 crore in Q3-22 to Rs 7974 crore in Q4-22.
- EBITDA of the company fell by 5.9% from Rs 1512 crore in Q3-22 to Rs 1422 crore in Q4-22.
Source – Bloomberg
Bajaj Auto Q4 Results – Segment Wise Analysis
Source – Bloomberg
Revenue from this segment fell from Rs 91,120 Million in Q3-22 to Rs 79,909 Million in Q4-22. While the operating income increased from Rs 15,336 Million in Q3-22 to Rs 16,845 Million in Q4-22, which is approximately equal to Rs 16,789 Millions in the same period of last year.
Revenue from this segment rose to Rs 2,727 Million in Q4-22 from Rs 2,572 Million in Q3-22. The operating income of this segment increased from the previous quarter from Rs 2,565 Million to Rs 2,725 Million in Q4-22. While the operating income decreased from the same time period last period by 3% from Rs 2,817 Million in Q4-21.
Sales of Commercial Vehicles worldwide soared from 132,816 Million vehicles in Q3-22 to 117,560 Million vehicles in Q4-22. While this number was 122,032 Million vehicles in the same time period the previous year.
Sales of Two-Wheelers worldwide have also soared from 1,048,545 Million vehicles in Q3-22 to 859,091 Million vehicles in Q4-22. While this number was 1,047,632 Million vehicles in Q4-21.
Reason for underperformance by the company
Due to sharp price spikes over the last few quarters, aluminum prices have risen over 30% this year, resulting in a drop in volumes and an increase in average selling price.
While Bajaj Auto’s sales volume was the hardest impacted among the two-wheeler (2W) companies in March (down 22% YoY and 8% sequentially), the effect was cushioned by flattish exports.
Diluted domestic demand, coupled with semi-conductor shortage, also drove the 41-per cent slump in domestic volumes.
However, three-wheeler (3W) business demand remained strong in March, with domestic volumes increasing by 15%.
Happy Analysing 📈
Disclaimer: This blog is not to be construed as investment advice. Trading and investing in the securities market carries risk. Please do your own due diligence or consult a trained financial professional before investing.