Bajaj auto

Type Public company

Traded as BSE: 532977

NSE: BAJAJ-AUTO

BSE SENSEX Constituent

CNX Nifty Constituent

Industry Automotive

Founder(s) Jamnalal Bajaj

   

Headquarters Pune, India

Key people Rahul Bajaj   (Chairman)

Rajiv Bajaj (MD)

Products Motorcycles,   three-wheeler vehicles   and cars

Revenue

208 billion (US$3.5 billion) (2012-13)

Net income42.77 billion   (US$720   million) (2012-13)

Employees 8,036 (March 2013)[1]

Parent Bajaj Group

Subsidiaries Bajaj Auto Indonesia

Website www.bajajauto.com

Overview

Company profile

Bajaj Auto Ltd is one of the leading two & three wheeler manufacturers in India. Bajaj Auto is the world's third-largest manufacturer of motorcycles and the second-largest in India. It is world’s largest three-wheeler manufacturer. The company is well known for their R&D, product development, process engineering and low-cost manufacturing skills. The company is the largest exported of two and three-wheelers in the country with exports forming 18% of its total sales. The company has two subsidiaries, namely Bajaj Auto International Holdings BV and PT Bajaj Indonesia. The company was incorporated on April 30, 2007 as a wholly owned subsidiary of erstwhile Bajaj Auto Ltd (the holding company) with the name Bajaj Investment & Holding Ltd. The company received the certificate of commencement of business on May 7, 2007. The holding company operated in the segments, such as automotive, insurance and investment, and others. Considering the growth opportunities in the auto, wind-energy, insurance and finance sectors, the holding company de-merged their activities into three separate entities, each of which can focus on their core businesses and strengthen competencies. The auto business of the holding company along with all assets and liabilities pertaining thereto including investments in PT Bajaj Auto Indonesia and in a few vendor companies transferred to Bajaj Investment & Holding Ltd. In addition a total of Rs 15,000 million in cash and cash equivalents also transferred to Bajaj Investment & Holding Ltd. As the part of the scheme, Bajaj Holdings and Investment Ltd were renamed as Bajaj Auto Ltd. The appointed date of this de-merger was closing hours of business on March 31, 2007. In April 9, 2007, the company inaugurated their green field plant at Pantnagar in Uttarakhand. In the first year of operations, the plant produced over 275,000 vehicles. The company's vehicle assembly plant at Akurdi was shut down from September 3, 2007 due to higher cost of production. In November 2007, Bajaj Auto International Holdings BV, a wholly owned subsidiary company acquired 14.51% equity stake in KTM Power Sports AG of Austria, Europe's second largest sport motorcycle manufacturer for Rs 345 crore. During the year 2007-08, the company launched XCD 125 DTS-Si and the Three-wheeler Direct Injected auto rickshaw. The Chakan plant completed the cumulative production of over 2 million Pulsar. During the year 2009-10, the company expanded the production capacity of Motorised Two & Three Wheelers by 300,000 Nos to 4,260,000 Nos. The company launched Pulsar 220 F, Pulsar 180 UG, Pulsar 150 UG, Pulsar 135 LS and Discover DTS-si in the market. During the year 2010-11, the company expanded the production capacity of Motorised Two & Three Wheelers by 780,000 Nos to 5,040,000 Nos. The company launched Avenger 220 DTS-i, KTM Duke 125, Discover 150 and Discover 125 in the market. The company plans to maintain the capacity of two and three-wheelers at the current level of 5,040,000 numbers per annum during the year ending 31 March 2012. The total production in 2013-14 was 15,83,935 for Two wheeler and three wheeler.

Products

Bajaj Avenger

Pulsar

Discover

Platina

Bajaj RE

Ninja

KTM

Competitors

Hero motocrop

Tvs motor

Hmsi

Yamaha motor india

Kinectic motor india

Last five years perfomance

Sale of motor cycle in domestic and exports in numbers

domestic sales for industry

domestic sales growth

bajaj auto domestic sales

bajaj auto domestic sales growth

bjaj auto domestic market share

export for industry

bajaj auto export of motor cycle

bajaj auto share of exports

2010 7,341,139 25.80%

1,781,768 39.60% 24.30%

1,103,104

725,023 65.70%

2011 9,019,090 22.90%

2,414,606 35.50% 26.80%

1,480,983

927,437 65.70%

2012 10,096,062 11.90%

2,566,757 6.30% 25.40%

1,847,517

1,267,648 68.60%

2013 10,085,586 -1%

2,463,874 -4% 24.40%

1,866,549

1,293,231 69.30%

2014 10,479,817 3.90%

2,099,230 -14.80% 20%

1,982,755

1,323,173 66.70%

Exports in units in 2014

FY2014 Growth

motorcycle

1,323,173 2.30%

three wheelrs 260,76

2 2.70%

total numbers 1,583,93

5 2.40%

FINANCIALS

2010 2011 2012 2013 2014

total revenue 12,096.6

5 17,008.0

5 20,201.2

6 20,839.1

2 20,840.1

0

expenses 9,531.1

0 13,396.9

0 16,074.2

0 16,562.5

1 16,185.2

3

Profit before tax 2,565.5

5 3,611.1

5 4,147.0

6 4,276.5

1 4,654.8

7

tax expenses 703.4

5 1,006.2

9 1,019.6

6 1,217.1

6 1,390.1

0

profit after tax 1,597.9

4 3,431.6

8 2,993.4

0 3,059.4

5 3,264.7

7

EPS 55.2

0 119.4

0 105.2

0 108.3

0 116.8

0

In the year 2010 the total revenue was 12096.65 and sale in unit was 2,506,791 and PBT was 2565.55 and PAT was 1597.94 In 2011 the revenue went to 17008.05 that is 40% growth and PAT was 3431.68The revenue is increasing but the sale in numbers has been decline from the year 2013.The sale in numbers2012 was 3,834,405 and it went down to 3,757,105 in 2013. In the year 2012 PAT went down by 12.77% that is 2993.40. In 2013 again bajaj auto PAT was increased by 2.21% In 2014 It was very difficult market consequently net sales and operating income was flat 20,840.10. Sales in unit reduce by 8.7%, with Bajaj Auto selling 3.87 million units to 4.24 million in units in the previous year. Export rose by 2.4% that is 1.58 million in units in 2013.-14 versus 1.55 million units last year. In 2014 Profit before tax (PBT) grew up by 8.85% and Profit after tax (PAT) went up by 6.71%

Valuation

P/E Market Cap (Rs.

Cr)

CMP* RoE (%)

RoCE (%)

PAT Margin

(%)

EBITDA Margin

(%)

Latest FY

EPS

Last FY

EPS

Net Debt/Equity

P/BV Off 52

week High

19.6 66,120.36 2285.00 33% 46% 16.3% 23.3% 116.8 108.3 -0.04 6.50 2%

Future Plans

Bajaj Auto ltd said it plans to roll out 5,000 units of its much-delayed four-seater "quadricycle" codenamed RE-60 from its Aurangabad plant. The company claims that the vehicle's 216-litre petrol will deliver a mileage of 35 km per litre, with lowest emissions.

Bajaj is planning to launch its new Pulsar 375 motor bike this year in the Indian market to compete better with both

domestic and global rivals in the country.

The company is aiming to launch 2 new Pulsar, and 6 new Discover variants during the next 12 months to increase the

competition and regain their No 2 position in the country. The company is planning to expand its presence both in the

Indian market as well as in foreign markets with the 8 new models planned.