Demonetisation has sizeably impacted sales of Bajaj Auto's motorcycles and commercial vehicles.
31 Jan 2017 | 6610 Views | By Autocar Pro News Desk
Bajaj Auto today announced its results for Q3, FY2017 and from the looks of it, overall numbers have borne the brunt of the demonetisation exercise from early November 2016.
The company posted a turnover of Rs 5,673 crore in Q3 FY2017, down 8% (Rs 6,127 crore/Q3 FY2016). Operating EBITDA ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Bajaj Auto today announced its results for Q3, FY2017 and from the looks of it, overall numbers have borne the brunt of the demonetisation exercise from early November 2016.
The company posted a turnover of Rs 5,673 crore in Q3 FY2017, down 8% (Rs 6,127 crore/Q3 FY2016). Operating EBITDA at Rs 1,131 crore is down 9.19% (Rs 1,235 crore/Q3 FY2016). While profit before tax is Rs 1,286 crore, down 4.12% (Rs 1,339 crore/Q3 FY2016), standalone profit after tax is Rs 925 crore, down 4.97% (Rs 971 crore/Q3 FY2016). Consolidated profit after tax is Rs 977 crore, down 5.5% (Rs 1,031 crore/Q3 FY2016).
Domestic motorcycle sales down
In Q3 FY2017, Bajaj Auto sold a total of 459,427 units, down 3.39% over Q3 FY2016. However, the company says its overall share in the domestic market stood at 18.5% in Q3 FY17 as against 17.4% in FY16.
While the CT100 and Platina commuter bikes sold over 204,000 units to hold a segment market share at around 33%, the newly launched V model has sold over 200,000 units since its launch with over 43,000 units in Q3 FY17. In December 2016, the company introduced the V12 model. Q3 FY2017 also saw over 178,000 Pulsars and Avengers being sold while KTM sold around 8,000 bikes in India. In December 2016, Bajaj Auto launched the all-new Dominar 400 motorcycle, its most powerful yet and one which draw in buyers in the near term.
CV sales also decline
With demonetisation impacting rural India substantially, Bajaj Auto’s commercial vehicle sales have also taken a beating. Overall Q3 FY2017 numbers at 53,602 units are 23.19% percent down on Q3 FY2016.
However, Bajaj Auto says it continues to be a market leader with its overall segment share in domestic market at around 46%. It is the market leader in the in-city segment with a market share of 86%, has the dominant share in the diesel segment (~32%) and the leader in the small diesel carrier segment (~70%). The company says its share in the domestic market of big diesel carriers at around 22% . The recently launched cargo vehicle has sold around 3,000 units for a market share of 11%.
Meanwhile, Bajaj Auto has announced that its entire motorcycle model and CV range is BS IV-compliant ahead of the mandatory compliance date of March 31, 2017.
As regards the company's international business, while it continues to maintain a significant share in major global markaets, economic crises and constraints in availability of foreign currency continue to drag performance. While a key market like Nigeria is yet to see market recovery, countries like Egypt are still plagued with availability of US$ currency and evaluation whle sales in Iran have been disrupted on new vehicle-related norms.