Bajaj Auto Posts Rs 978 Crore Profit In Q1, Meets Estimates

Bajaj Auto's standalone net profit edged 2 per cent higher to Rs 978 crore in the June quarter. Total income from operations inched up to Rs 6,089 crore from Rs 5,881 crore during the same period of the previous fiscal. 

The numbers were in line with the Street's estimates. Bajaj Auto's net profit was boosted by other income of Rs 267 crore. 

The two-wheeler maker reported an operating or EBITDA profit of Rs 1,227 crore, higher than the Rs 1,191 crore posted in the same quarter of the previous year. 

Operating or EBITDA margin rose to 21.2 per cent from 21.1 per cent. 

The automaker sold 994,733 units in the June quarter, down from 1,013,029 units a year earlier. The company said its total exports declined by 22 per cent to 3,70,649 units as against 4,76,496 units in the same quarter last fiscal. Bajaj Auto cited input cost pressure and headwinds in export markets as challenges during the quarter.

Mihir Jhaveri, director of institutional research at Religare Capital Markets, in a note said that Bajaj Auto's overall Q1 numbers were in line with estimates and net profit came slightly ahead of estimates due to higher other income and lower taxes.

The brokerage has a buy rating on the stock, which is currently trading at 18 times its estimated FY17 earnings and 15 times estimated FY18 earnings.  Religare has a target price of Rs 2,750 on the stock. 
            
Bajaj Auto shares ended 0.14 per cent lower at Rs 2,670. (With Agency Inputs)