Record Profits by Bajaj Auto

Bajaj Auto observed record Profits with EBITDA margin at 21%. A meeting of the Board of Directors of Bajaj Auto Limited was held today to consider and approve the results for Q3/ FY12. Performance of the company has been exemplary. Company Officials said Q3 / FY12 was another strong quarter for the company. The total sales crossed 1 million units; 3rd time in a row with Turnover of 5154 crore and Export revenue of 1710 crore. The Operating EBITDA is surprisingly 1061 crores, highest ever score. Also the Profit after tax, before exceptional items was 834 crore which is highest till now. The EBITDA margin of 21.0% is the best in the industry.

   
Motorcycles sales in domestic market has grown 7% and Exports have improved by good 27%. Sales during festive season were satisfactory. However, towards end of  November, industry sales witnessed a slowdown. Overall market share stood at ~31% in Q3 / FY12. Sale of Commercial vehicles have grown by 1% locally and 35% in Exports. Overall demand for commercial vehicle continues to be strong.
Company dominates the petrol & alternate fuel passenger segment with market share of ~87%.
                                               
Export sales continue to be robust and ahead of plan. Overseas markets now contribute over 35% of all vehicles sold. Company is on course to exceed its target of 1.5 million vehicles for the year. Motorcycles mainly Bajaj Pulsar have given growth of 27%, three wheeler contributing 35%. Overall total Export revenue sum up to be 51%.

The Operating Results can be summed up as:

   A. Margins

          In a challenging business environment, the company has improved its operating EBITDA margin from
          20.1% in Q2 / FY12 to 21.0% in Q3 / FY12. The improvement in margin was primarily due to higher
          realization from exports.

   B. Exceptional items

          The Company has entered into foreign exchange contracts to hedge highly probable forecast
          transactions. MTM losses in respect of effective hedges is carried to the Hedge Reserve and
          ineffectiveness, if any, including the time value of option contracts is recognised in the results, as per
          the principles of AS-30. The time value of option contracts, aggregating `154 crore for 9M / FY12, will
          reverse over the tenure of the contract.

   C. Cash and cash equivalents

          The company had surplus cash and cash equivalents of ` 4758 crore, as on 31st December 2011.

   D. Awards

          In recognition of its consistent and outstanding performance, the company has received the
          ET ZW Special Award – Bike maker of the year
          CNBC – TV18 IBLA – Outstanding Business Leader of the year – Mr. Rajiv Bajaj, MD Bajaj Auto and
          NDTV Profit Business Leadership Awards 2011 – Automobiles – Two Wheeler