11
NEW DELHI: Bajaj Auto on Wednesday posted double-digit rise in key financial numbers for the quarter ended December 2018.
The auto major reported 15.60 per cent year-on-year rise in net profit on 16 per cent rise in sales for the quarter under review.
Shares of the company were trading 1.48 per cent down at Rs 2,528.90 after the announcement of quarterly numbers.
Here are the top five takeaways from Bajaj Auto's third quarter earnings.
Net profit: The company posted a net profit of Rs 1,101.88 crore in Q3FY19 over Rs 952.44 crore in the same period last year.
An analyst poll by ETNow projected a net profit of Rs 1,047 crore.
Revenue: Total revenue from operations increased to Rs 7,409.36 crore for the said quarter against Rs 6387.64 crore in the same period last year.
Volumes: Bajaj Auto witnessed 25.79 per cent rise in units sold at 12,59,828 vehicles during the quarter under review against 10,01,469 units a year before.
Cash and cash equivalents: As on December 31, 2018, surplus cash and cash equivalents stood at Rs 16,467 crore as against Rs 16,164 crore in the preceding September quarter.
Brokerage take: According to ICICIdirect, Bajaj Auto reported muted performance in Q3FY19 and was below their estimates on the profitability front.
The company reported EBITDA margin decline of 120 basis poits QoQ to a new low of 15.6 per cent vs.
ICICIdirect’s estimates of 16.4 per cent, primarily tracking higher raw material as well as other expenses.
PAT, however, grew 16 per cent YoY supported by higher other income and low tax incidence.
“We do not support the company’s strategy to undercut its product prices to gain market share, as it structurally lowers the return ratios.
We maintain our cautious stance on the stock,” ICICIdirect said in a note.
