1QFY21 results of Bajaj Auto - Mr. Rajit Rajoriya , Equity Research Associate, Angel Broking Ltd

"Bajaj Auto reported a 60.3% decline in Net sales to Rs 3,079Cr from Rs. 7,756Cr in the year ago quarter which is in line with street estimates of 60% decline. Sales volume number the quarter were at 443,103 units, down 64.5% on a YoY basis. Operating margins were at 13.3% down by 210bps from 15.4% in the same quarter a year ago which was in line with street expectations. PAT dipped 53% to 528Cr from 1,125Cr on YoY basis against street's estimates of 535Cr. In the quarter Domestic Motorcycle segment fell by 70% against industry fall of 73%. Overall share in the domestic motorcycle market was 20.7% as against 18.5% in FY20. Domestic market of Commercial Vehicles was severely impacted due to the pandemic. Industry recorded a decline of 91%. Being a market leader, Bajaj Auto was impacted the most. Overall share in the domestic market was 42.6% for Q1FY21. From International business, Bajaj Auto recorded sales of over 251000 units with a volume decline of 54%. Q1 has been a tough quarter for the company due to country-wide lockdown which hampered the manufacturing activities at all major locations. However, Company has met the market expectations in the quarter. Going forward, with the gradual opening up of the economy we will see a significant jump in numbers on a sequential basis."

Shares of BAJAJ AUTO LTD. was last trading in BSE at Rs.2985.6 as compared to the previous close of Rs. 3004.35. The total number of shares traded during the day was 78198 in over 7972 trades.

The stock hit an intraday high of Rs. 3025 and intraday low of 2928.55. The net turnover during the day was Rs. 232319991.

Source : Equity Bulls

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