As such, it was a given that Bajaj Auto’s Q2FY16 would come out smelling roses when compared to Q2FY15 as in previous years Q2, the company had to bear a one-time penalty of Rs.340 crore from Uttarakhand government on account of National calamity contingent duty case.  Thus it came as no real surprise to see the company end Q2FY16 with a 58% (YoY) jump in net profit at Rs.933 crore and this was on a 2% rise in total income at Rs.6098 crore. So what comes across is that but for the lower base effect, current Q2 would have been stable and tepid.

During Q2, exports stood at Rs.2836 crore, up 4% and this was 45% of the total revenue. EBITDA was at Rs.1357 crore, up 9% and margins went up from 22.1% to 20.8%. The company’s main bread winner is Pulsar which sold 2,64,000 units, a 21% increase while commercial vehicles saw a 315 increase at 67,000 units. Average realization on exports was higher on account of higher dollar vis-à-vis the rupee at Rs.65.2/$ v/s Rs.63.9/$ (QoQ). The company currently has a 40% market share in the two-wheeler segment and is planning on a new brand launch in Q4 of current fiscal. Its Quadricycle, named as Qute has commenced exports while the domestic launch awaiting the Supreme Court hearing, scheduled for 2^nd Dec.