- 28 Apr 2022
- ICICIdirect Research
Bajaj Auto reports stellar performance in Q4FY22
BAJAJ-AUTO - 10892 Change: 83.70 (0.77 %)News: Bajaj Auto (BAL) reported a robust performance for the quarter, with all key readings surpassing our estimates. Total operating income for the quarter came in at Rs 7,975 crore (down 11.6% QoQ) amidst 17.3% QoQ decline in total volumes for the quarter at 9.8 lakh units. Reported EBITDA in Q4FY22 was at Rs 1,365.6 crore, with EBITDA margins coming in at 17.1% (up 191 bps QoQ). Consequent reported PAT was up 21% QoQ to Rs 1,469 crore. PAT include onetime exceptional gain of Rs315 crore (incentive receivable from the state government of Maharashtra for the period April 2015-March 2021)
Views: The real positive surprise came in from better-than-expected ASPs (up 6.2% QoQ), gross margin expansion (280 bps QoQ) and consequently four quarterly high operating margins of 17.1% (up 191 bps QoQ). One likely season for the same could be high share of exports in total sales volume which for the quarter was at 60% vs. 56% in Q3FY22. With surplus cash & cash equivalents as of March 2022 end at Rs 19,090 crore the company also declared a dividend of Rs140/share (~80% dividend payout) with record date for the same fixed as July 1, 2022. We expect stock to open positive in opening trade today
Impact: Positive