The Pune-based Bajaj Auto has reported robust numbers for Q1 FY2019. Strong overall sales of 1,226,641 units (two-wheelers and CVs) up 38 percent YoY, which helped the company garner a record revenue of Rs 7,824 crore, up 33 percent compared to Q1 FY2018.
Q1 FY2019’s profit after tax is Rs 1,152 crore, up 21 percent YoY; EBITDA is Rs 1,378 crore, up 37 percent YoY, and EBITDA margin 18.4 percent. In the April-June 2018 period, the company saw both the domestic and exports markets performing nicely. The company reported sales of 594,234 motorcycles (+39%) and 94,431 CVs (+80%) in India, while in the export market it sold 435,730 bikes (+25%) and 102,246 CVs (69%).
On a high in the domestic market
According to the company, it has clocked growth of 39 percent in the domestic motorcycle market in Q1 FY2019 as against the industry growth of 19 percent, which has helped it increase its share in the market to 16.3 percent as against 14 percent for the same period last year.
In an earlier report, Autocar Professional had pointed out that the sharp growth in Bajaj Auto’s monthly volumes can be attributed to the demand for products from the Pulsar, CT100, Platina and Discover brands. The company states that in the entry-level segment it grew by 74 percent, as against industry growth of 30 percent, which saw CT 100 going home to over 190,000 customers, while the Platina went to 104,000. While the Pulsar and the Avenger brand saw sales of over 223,000 units – growth of 47 percent over Q1 FY18.
The company which is a market leader in the three-wheeler commercial vehicle segment, states it sold over 94,000 units in Q1 FY19, recording a growth of 80 percent as against an industry growth of 52 percent. Bajaj Auto says it continues to be the market leader with an overall share in domestic market at 58.9 percent, with the RE brand being the market leader in the small three-wheeler segment with a market share of 84.9 percent. ‘
In the three-wheeler passenger carrier segment, its Maxima brand has a market share of 39.4 percent. In the goods carrier segment the company reported a YoY growth of 76 percent, which helped it improve its market share to 24.8 percent from 16.9 percent in Q1 FY18.
International business booms
The company says in Q1 FY19 it achieved its highest ever quarterly exports by shipping around 538,000 units, up 31 percent YoY. Bajaj Auto states the growth came from both new and matured markets. In terms of volumes, sales in Nigeria more than doubled from nearly 46,000 motorcycles and CVs in Q1 FY18 to over 119,000 motorcycles and CVs in Q1 FY19. Demand in Egypt, likewise, grew from 19,000 motorcycles and CVs to over 42,000 units.
Cambodia, Iraq and Ghana collectively witnessed growth in CV sales, from 1,900 units in Q1 FY18 to over 10,000 units in Q1 FY19.
In value terms, Q1 FY19 exports contributed $444 million (Rs 3,151 crore), compared to $347 million (Rs 2,479 crore) for the same period last year.
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