Bajaj Auto (BOM:532977)

QUOTE AND NEWS
The Economic Times  Sep 29  Comment 
"Bajaj Auto is a 'BT/ST' call with a target of Rs 2290 and a stop loss of Rs 2331."
The Economic Times  Sep 25  Comment 
'Bajaj Auto is a 'BUY' call with a target of Rs 2430 and a stop loss of Rs 2350.'
The Hindu Business Line  Sep 23  Comment 
Bajaj Auto extended its recent firm run on the bourses into trading on Tuesday. At 11.15 am the stock was trading at ₹2,447 on the BSE as against ₹2,412.75 at close on Monday. This represented a g...
The Economic Times  Sep 22  Comment 
"Bajaj Auto Ltd is a 'BUY' call with a target of Rs 2480 and a stop loss of Rs 2359."
The Hindu Business Line  Sep 19  Comment 
Bajaj Holdings & Investment has said that Kevin D’Sa, who is currently the CFO of Bajaj Auto Ltd (BAL), Bajaj Finserv Ltd (BFS) and Bajaj Holdings & Investment Ltd (BHIL), has chosen to co...
The Economic Times  Sep 19  Comment 
"Bajaj Auto is a 'BUY' call with a target of Rs 2520 and a stop loss of Rs 2400."
The Hindu Business Line  Sep 18  Comment 
In a bid to introduce entry-level supersport motorcycling in India, Bajaj Auto has now brought in KTM’s RC 390 and 200 to the Indian market. The fully faired RC 390 and RC 200 share their four-...
The Economic Times  Sep 17  Comment 
Bajaj Auto announced a contribution of Rs 20 crore towards the PM's Relief Fund to help operations in flood-ravaged Jammu & Kashmir.
The Hindu Business Line  Sep 17  Comment 
The Economic Times  Sep 16  Comment 
'In the two-wheeler space, we prefer Bajaj Auto to Hero MotoCorp and somebody with a risk appetite can look at TVS Motors.'
The Hindu Business Line  Sep 11  Comment 
Speed and creation of a category are vital in the auto sector: Rajiv Bajaj, MD, Bajaj Auto





 

History

Bajaj Auto Ltd. came in to existance in year 1945. It started selling vehicle in 1948 after importing them from abroad.

In 1959 Bajaj started its own manufacturing unit in India (Akurdi Plant) . and 1960 it became publicly listed company.

In 1970s it started producing three wheelers (for goods transport also) and became pioneer in three wheeler business.

in the same decade it started production of one of the most successfull scooter model in india Bajaj Chetak.

In 80s it started production of Bikes with Kawasaki bajaj but till year 2000 it was not a major player in Bike segment.

But in year 2001 Bajaj came with Pulsar and became major player in Power biking. And now bajaj planning to go in four wheeler pessenger car segment also with 2500$ car.



Quarterly Result Analysis- Sept '09

Performance summary

- Topline grows by a decent 15% YoY during the quarter. Volume growth comes in at 7% YoY.

- Operating profits jump a strong 85% YoY as the company achieves record operating margins of 22%, a more than 8% expansion as compared to the previous quarter.

- Further aided by benign depreciation charges and lower extraordinary expenses, net profits during the quarter witness a spectacular growth of 118% YoY, enabling the company to post its highest ever quarterly profits.

- Half yearly bottomline grows by 93% YoY on the back of a 8% growth in topline.


(Rs m) 2QFY09 2QFY10 Change 1HFY09 1HFY10 Change
Units sold 640,042 686,727 7.30% 1,260,137 1,234,389 (2.00%)
Net sales 25,192 28,875 14.60% 48,239 52,260 8.30%
Expenditure 21,753 22,510 3.50% 42,132 41,341 (1.90%)
Operating profit (EBDITA) 3,439 6,365 85.10% 6,106 10,919 78.80%
EBDITA margin (%) 13.60% 22.00% 12.70% 20.90%
Other income 221 217 (1.70%) 509 449 (11.80%)
Interest (net) 59 ( ) 68 60 (12.10%)
Depreciation 331 336 1.50% 666 667 0.10%
Profit before tax 3,270 6,247 91.00% 5,881 10,642 80.90%
Extraordinary income/(expense) (611) (458) (25.00%) (611) (699)
Tax 810 1,760 117.30% 1,670 2,980 78.40%
Profit after tax/(loss) 1,849 4,028 117.90% 3,600 6,963 93.40%
Net profit margin (%) 7.30% 14.00% 7.50% 13.30%
No. of shares (m) 144.7 144.7 144.7 144.7
Diluted earnings per share (Rs)* 68.5
Price to earnings ratio (x)* 22.9
                                                  (* annualised)


What has driven performance in 2QFY10?

- The 15% growth in topline during the quarter was driven by both higher volumes as well as improved product mix. Motorcycles, which account for nearly 90% of all the vehicles sold by the company, grew by 5% in the domestic markets, whereas exports of the same improved 10%. The growth in the domestic markets was driven by new launches like the upgraded version of the Pulsar as well as the Discover DTS-Si. The company also managed to grow the domestic sales of its three wheelers by an impressive 27% during the quarter, a feat that could be attributed to its marketing initiatives geared towards the in-city segment. On the exports front, with the revival of its key exports market, it witnessed highest ever quarterly exports and the company is now well poised to exceed its target of 0.8 m vehicles for the year.

- As far as margins are concerned, the company has managed to achieve record operating margins to the tune of 22% during the quarter. This was higher by more than 800 basis points as compared to the same quarter last year and enabled the company to grow its operating profits by 85% on a YoY basis. The drastic improvement in margins could be attributed to greater sales of high value products such as Pulsars, Discovers and three wheelers as well as benefits emerging out of the economies of scale. Going forward, while the same level of margins may not continue, it could indeed come higher than historical levels as the company focuses more on high value products.


- With depreciation charges remaining benign and extraordinary losses coming in lower as compared to same quarter last year, the company has managed to more than double its net profits during the quarter, growing it by 118% YoY.

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