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Bajaj Auto Q1 FY21 Results: Net Profit Falls 53 Per Cent Due To COVID-19 Pandemic

Bajaj Auto registered net profit of Rs. 528 crore for the first quarter of FY21, which is a drop of 53 per cent over last year. The steep decline in net profit could be attributed to the disruptions caused by the coronavirus pandemic.

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Bajaj Auto registered a drop of 64.47 per cent in total sales for Q1 FY21

Highlights

  • Bajaj Auto's net profit fell 53% to Rs. 528 crore in Q1 FY21
  • At Rs. 441 crore, the company's EBITDA fell 64.72 per cent
  • Bajaj's 2-wheeler market share grew from 18.5% to 20.7% in Q1 FY21

Bajaj Auto registered net profit of ₹ 528 crore for the quarter of April-June 2020. This is a drop of 53 per cent over last year but in line with the estimates of analysts. The company sold a total of 443,103 units in Q1 FY21 compared to 1,247,174 units sold in Q1 FY20, registering a drop of 64.47 per cent. The total revenue too fell 54.82 per cent, with ₹ 3,079.24 crore earned in Q1 FY21 against ₹ 6,815.85 crore earned in the same quarter last year. The EBITDA of the company for Q1 FY21 stood at ₹ 441 crore, which is a drop of 64.72 per cent when compared to the EBITDA of the same quarter last year at ₹ 1,250 crore.

Also Read: Bajaj Auto Aurangabad Plant Workers To Get 50 Per Cent Pay Cut

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(Bajaj saw its market share in twp-wheeler segment grow from 18.5 per cent in Q1 FY20 to 20.7 per  cent in Q1 FY21)

"Q1 of FY21 has been an extremely challenging quarter due to the unprecedented COVID-19 pandemic. Lockdown and other containment / precautionary measures have resulted in disrupted supply lines and a sharp decline in overall demand. Impact of this pandemic was experienced in India and in countries across the globe that we export to. While we have restarted operations, sporadic localised lockdowns are disrupting the supply chain and impacting the ability of the business to return towards normalcy", Bajaj said.

Also Read: Bajaj Auto Union Seek Plant Closure After 250 Employees Test Positive For COVID-19

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(Bajaj Auto's exports too fell sharply in Q1 FY21, by 54.21 per cent)

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In terms of total sales, there were signs of normalcy where Bajaj had a slight growth in its market share, from 18.5 per cent in Q1 FY20 to 20.7 per cent in Q1 FY21. The company's domestic sales in the quarter ended June 2020 fell 73 per cent to 191,263 units, when compared to 697,153 units sold in Q1 FY20. The company's exports also fell 54.21 per cent, with 251,840 units exported as compared to 550,021 units exported during the same time last year. Bajaj also said that the Indian market for commercial vehicles saw a strong impact due to COVID-19 pandemic. The overall Indian CV industry saw a decline of 91 per cent and Bajaj had to bear the maximum brunt as it is a market leader.

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