Bajaj Auto Q4 net profit falls 18.63 per cent, shares up 7 per cent

Bajaj Auto has reported a, 18.63 per cent fall in net profit for the fourth quarter ended March 31, 2015.

For the January-March period, the two-wheeler major posted a net profit of Rs 621.62 crore, against Rs 763.93 crore in the same quarter a year ago. Total Income from operations decreased 3.9 per cent to Rs 4,739.34 crore for the quarter under review.

Bajaj Auto's total expenditure during the period increased by 1.98 per cent year-on-year to Rs 3,965.34 crore. The rise can be attributed to the cost of purchase of stock-in-trade, employee benefit expense and other expenses.

For the entire 2014-15 financial year, Bajaj Auto reported a 13.25 per cent drop in net profit to Rs 2,813.74 crore, against Rs 3,243.32 crore last year.

Angel Broking Senior Research Analyst Bharat Gianani says: "Bajaj Auto 4QFY2015 results were ahead of our estimates due to better operating performance. Revenues declined 4 per cent yoy to Rs 4,739 crore but were better than our estimate of Rs 4,519 crore. Higher export realisation lead to beat on the top line. Operating margins adjusted for one time provision of Rs 59 crore (on account of increase in gratuity provisions) stood at 18.9 per cent; which is in line with our estimates. At present, we have accumulate rating on the stock."

Shares of Bajaj Auto soared 6.94 per cent to Rs 2,299.75 on Thursday.

Religare Securities sees the company's scrip touch Rs 2,500 in the coming quarters. "Bajaj Auto Q4 FY15 net profit figures were as per our expectations," it said in a note.