Bajaj Auto maintains market share in domestic market

Bajaj Auto announced its quarterly results for Q2FY21 on October 22, 2020. The total volumes stood at 10,53,337 units, showing a decrease of 10 per cent YoY.

Pulsar sold the highest-ever units, which is almost 3,48,561 while KTM and Husqvarna sold 20,200 units. The domestic two-wheeler showed an increase of 6 per cent from 5,21,350 units in Q2FY20 to 5,50,194 units in Q2FY21. The overall domestic industry grew by 7 per cent in Q2FY21. Thus, Bajaj Auto was able to maintain its market share of 18.2 per cent in H1FY21 as against 18.1 per cent in H1FY20.

The company reported standalone revenue from operations stood at Rs 7,156 crore in Q2FY21, showing a decrease of 7 per cent YoY. EBITDA for the quarter was nearly flat at Rs 1,300 crore in Q2FY21. Thereby, the EBITDA margin for Q2FY21 improved to 18.2 per cent from 16.9 per cent in Q2FY20. Profit after tax stood at Rs 1,138 crore in Q2FY21 as against Rs 1,402 crore in Q2FY20, showing a decrease of 19 per cent. Bajaj Auto could gradually ramp-up production and currently, operates at nearly 90 per cent of normal levels, barring some sporadic interruptions from time to time due to supply chain disruptions caused by the local level lockdowns.

Since the onset of 2020, the stock has given an absolute return of -4.38 per cent, outperforming S&P BSE Sensex, which gave a return of -1.80 per cent.