BAJA AUTO

The second largest two-wheeler company of India disappointed the markets with a lower than expected Q1FY15 numbers. the company had a flat net profit growth of less than 0.5%, with Q1FY15 net profit coming in at Rs.740 crore v/s Rs.738 crore. Net revenue showed a growth of 7% at Rs.5133 crore and other income rose 24% at Rs.219 crore. Weak operational performance apart, higher depreciation also dented the bottomline. The company changed its method of depreciation and this increased the outgo by Rs.16 crore.  Forex loss for the quarter came in at Rs.67 crore v/s Rs.96 crore loss in Q1FY14.

Export revenue for the quarter was at Rs.2251 crore, up 20%, contributing 44% to net sales with volume growth of 22%. Exports to Egypt resumed in July and this is expected to reflect in better export numbers in current Q2. Overall volumes were sluggish, growing just 0.9% though domestic volumes fell 11.5%. But EBITDA margin was lower at 19.6% v/s 21.3% in previous Q1 and 20.6% in Q4.  Its Discover brand remained under a cloud, with loss in market share. The company is planning launch on new Discover model in coming month and this, the company is hoping will boost market share. Cash and cash equivalents as at 30th June 2014, stood at Rs.9255 crore.