Pune-headquartered two- and three-wheeler major Bajaj Auto reported its Q2 FY2021 financial result. The company reported revenue of Rs 7,442 crore, down 8 percent YoY, EBITDA at Rs 1,300 crore compared to Rs 1,305 crore for the same period last year.
The company sold a total of 1,053,337 two- and three-wheelers globally, which is 10 percent lower compared to the same period last year. The total sales includes 550,194 two-wheelers (+6%), 23,392 CVs (-78%) in the domestic market, and exported 414,271 two-wheelers (-11%) and 65,480 CVs (-20%).
During the quarter the company says it witnessed the highest ever sales of the Pulsar motorcycle at 348,561 units; KTM and Husqvarna witnessed the highest ever domestic sales at 20,200 units.
For the quarter the company reported PAT of Rs 1,138 crore, which is 19 percent lower YoY. Bajaj Auto says the PAT for Q2 FY2021 was lower due to the lower interest rates/yields during on the back of a reduction of treasury income. Also, last year, the corporate tax rates were revised which resulted in a one-time gain of around Rs 182 crore for Q2 FY2020.
Bajaj Auto says the domestic two-wheelers registered a strong turnaround in the first half of the quarter driven by pent up demand. While the exact festive spike is awaited, early signs show (strong) indications of a recovery. The OEM says its growth was in line with the Industry at 7 percent in Q2 FY2021, and its market share remained at the same level of 18.2% in H1 FY2021 vs 18.1% in H1 FY2020.
In the CV segment, Bajaj Auto states that the domestic CV volumes continue to remain muted and are dependent on the return of adequate short-distance mobility demand. Within CV, cargo fared better than passenger and its share increased to 37 percent which is the highest ever. Overall, its market share was 53.3%.
On the export front, Bajaj Auto continues to perform well, and in September it clocked highest-ever monthly exports at 212,000 units. It witnessed strong demand revival in Latin America and Africa while ASEAN continues to be weak and Sri Lanka has stopped all vehicle imports. The growth in LATAM was driven by the Sports segment – Pulsar and Dominar.