The Pune-headquartered Bajaj Auto is on a roll. The motorcycle and three-wheeler major today reported its H1 (April-September 2018) and Q2 (July-September 2018) FY2019 results and they are all good news for the company. While overall revenue in H1 FY19 grew by 22 percent to Rs 16,192 crore, EBITDA was Rs 2,831 crore (+19%), EBITDA margin 18.2 percent and Profit After Tax Rs 2,268 crore (+11%).
In Q2 FY2019, the company witnessed its best-ever quarter, reporting sales of 1,339,444 two-wheeler and three-wheelers combined (804,645 domestic sales and 534,799 exports) globally. Interestingly, Bajaj Auto’s domestic motorcycle sales – 692,899 units – have been the highest ever for the company. The robust sales performance means Bajaj Auto has recorded its best-ever quarter – revenue of Rs 8,368 crore, EBITDA of Rs 1,454 crore and PAT of Rs 1,152 crore.
CT100, Platina power commuter sales, Pulsar hits a new high
See the volume table above and it’s amply clear that Bajaj Auto is firing on all cylinders – both in the domestic and export markets.
In the domestic market, the company has outperformed the industry by recording growth of 19% over Q2 / FY2018 as against industry growth of 8%. Its overall share in the domestic motorcycle market increased to 18.6% as against 16.9% in Q2 / FY2018. In September 2018, its overall share in the domestic motorcycle market was 20.1%.
In the entry-level segment, as against industry growth of 27%, Bajaj Auto recorded growth of 50% over Q2 / FY2018. The CT 100 sold over 248,000 units, which marks YoY growth of 40%. The Platina sold over 153,000 units, which is growth of 47%. What’s more, the company’s share in this segment of the domestic motorcycle market further improved to 37.7% in Q2 / FY2019 as against 33.7% in Q1 / FY2019 and 32.0% in Q2 / FY2018.
Furthermore, the Pulsar, along with the Avenger, sold over 233,000 units. This includes over 87,000 Pulsars – the highest ever in a month – in September 2018. With this, Bajaj says it maintains its dominance in this segment with a share of 40.5% in Q2 / FY2019.
Uptick in CV sales, exports boom
With sales of 112,000 commercial vehicles in Q2 FY2019, up 32 percent YoY, Bajaj Auto continues to be the market leader in the segment having an overall share of 58.9 percent. In the three-wheeler space the RE brand remains the dominant force with a share of 85.9 percent, while the Maxima brand in the big three-wheeler segment has a share of 36.5 percent.
In terms of exports the company continues to scale new highs reporting growth across most markets. In Q2 FY2019, the company exported around 535,000 units (+33%), with the African and South Asia & Middle East markets leading the sales chart. The company clocked highest ever exports of 190,506 units in September 2018. Led by demand in Africa and SAME (South Asia & Middle East), motorcycles sold over 433,000 units, a growth of 30% over Q2 / FY2018. Africa recorded a growth of 53 percent while ASEAN recorded a growth of 35% over Q2 / FY2018. CV sales were over 101,000 units, a growth of 49% over Q2 / FY2018.
In terms of its investment in Austrian-bikemaker KTM, in which it holds a 47.99 percent stake, the benefited from sales of 57,638 units globally in Q2 FY2019, up 27 percent. This translated into Bajaj Auto garnering Rs 105 crore proportionate profit (accounted in the Q2 FY2019 consolidated result).
The company, which currently has cash reserves of Rs 16,164 crore as of September 30, 2018, also announced that it has elevated Rakesh Sharma, who currently serves as the chief commercial officer (CCO), as an additional director and whole-time director, with the designation of executive director for five years, which will come in effect from January 1, 2019. The appointment is subjected to the approval by the shareholders in the company's AGM to be held in July 2019.
Also read: Top 10 Motorcycles – September 2018 | CT100 now India’s fourth-largest selling bike, helps Bajaj Auto ride past Honda in market share