Bajaj Auto has posted a net profit of ₹622 crore for the quarter ended March 31, 2015, against ₹784 crore in the same quarter 2014, representing a decline of 18.6 per cent on a year-on-year basis.
The Board has recommended a dividend of ₹50 per share subject to shareholders’ approval at the AGM on July 23.
The Pune-based company’s sales declined from 9.36 lakh units to 7.83 lakh units which stands lower by 16.34 per cent Y-o-Y, while net income from operations too, declined to ₹4,739 crore against ₹4,932 crore in Q4 FY-14, a decline of around 3.9 per cent.
The operating EBITDA at 19.4 per cent stood lower than 20.6 per cent recorded in the same quarter of 2014.
Margins for the quarter, the company explained were impacted by several one-off expenses.
First, two rate cuts by RBI during Q4, resulted in an increase in charge due to actuarial valuation for gratuity from Rs 31 crore last year to Rs 90 crore. Second a provision for loss on account of a fire at Akurdi in January 2015.
“We also took a depreciation hit of ₹20 crore during the quarter (and ₹80 crore for FY-15),” said S Ravikumar, President, Business Development.
For the year as a whole, the company’s net profit in FY-15 declined by 13.22 per cent to stand at ₹2,814 crore.
The net profit in FY-14 was ₹3,243 crore.
Total sales were virtually flat at 3.81 million units against 3.87 million units.
The income from operations however, rose to stand at ₹21,612 crore against ₹20,149 crore, a rise of 7.2 per cent on the back of exports that grew 19 per cent in value to ₹9,758 crore and accounted for 46 per cent of net sales.
This was despite exports to many overseas markets being hit by local problems.
Key motorcycle export markets such as Nigeria and Egypt have bounced back in April, Ravikumar added.
Bajaj Auto’s operating EBITDA declined to 20.3 per cent from 21.6 per cent.
Profits were impacted by a one-time only exception charge of ₹340 crore towards payment of National Calamity Contingent Duty (NCCD) by its Pantnagar plant for the last seven-and-a-half years (April 1, 2007, to September 30, 2014).
Amongst the highlights of the year was ₹52 crore received by Bajaj Auto’s wholly-owned subsidiary in the Netherlands as dividend for its 48 per cent stake in Austrian sports bike-maker KTM AG.
Following the results, the company’s shares soared by over 7 per cent during trade on the BSE to touch a monthly high of ₹2,313 per share and closed at ₹2,299 a piece, a gain of 6.94 per cent.