Bajaj Auto

Its EBIDTA margin is stated to be the best in the sector, consistently scoring much above 20%. But this time around, in Q3FY13, its margins slumped. Albeit marginally, margin fell from 21% to 20.1% on YoY. Yet, sequentially, it was up from 19.7%. Rise in net profit was also very modest – up 3% at Rs.819 crore on a 10% rise in net revenue at Rs.5310 crore. This subdued kind of performance is on account of lower exports, which fell 2% and demand in domestic market was also affected due to higher fuel costs, rising prices and high interest rates.

In Q3FY13, the company sold 11.28 lakh units, up 5% on YoY percent year-on-year. Its domestic motorcycle sales rose 7% at 6.87 lakh units and exports fell 2% at 2.99 lakh units. Its total market share stands at 32% and its Pulsar remains a market leader in the 125cc range, with a 40% market share. Society of Indian Automobile Manufacturers (SIAM) had recently put out a report and stated that the auto performance indicates a slowdown. It has cut motorcycle sales growth forecast for FY13 to 3-5% from the earlier 5-7%.   The company expects growth to be flat this fiscal with total sales of around 43 lakh vehicle sales, with demand from motorcycles remaining sluggish. A new 3-wheeler will be launched at the beginning of FY14 and the company expects this and the 100cc bike to drive demand. Overall, Q4 could remain flattish.