Bajaj Auto on Thursday reported a 7 per cent year-on-year decline in its consolidated net profit at Rs 4,857 crore for fiscal year 2020-21 on fall in vehicle sales.
During FY21, the company's total sales fell 14 per cent to 39,72,914 units. While two-wheeler sales declined 9 per cent to 36,05,893 units, commercial vehicle sales contracted 45 per cent to 3,67,021 units.
"Full year numbers are not comparable as first quarter of FY21 was an absolute washout due to the pandemic and Q4 and full year FY20 had about Rs 119 crore and Rs 234 crore as dividend income, respectively. For FY21, no dividends were received," the automaker said.
The company's total turnover fell 8 per cent to Rs 29,018 crore during the year, while earnings before interest, tax, depreciation and amortisation contracted 4 per cent to Rs 5,063 crore. "For FY21, EBITDA margin improved, by 70 basis points to 18.3 per cent as against 17.6 per cent for FY20, on the back of better product mix and various austerity measures."
For January-March quarter, Bajaj Auto reported a 15 per cent growth in net profit at Rs 1,551 crore, while turnover grew 21 per cent to Rs 8,880 crore. Total sales rose 18 per cent to 11,69,664 units, with two-wheeler sales growing 23 per cent to 10,47,632 units. However, commercial vehicle sales slipped 12 per cent during the quarter to 1,22,032 units. Exports continued to perform well with sales of over 6,35,000 units.
The company's EBITDA rose 20 per cent to Rs 1,558 crore during the quarter under review, but EBITDA margin contracted 90 basis points to 18.1 per cent. Bajaj Auto attributed the contraction in EBITDA margin to a sharp increase in input costs and said they continue to rise even in April-June quarter of the ongoing financial year.
Bajaj Auto said the domestic commercial vehicle business remains impacted due to inadequate demand for short distance mobility. However, it is recovering over the quarters, albeit slowly. The company has become a market leader in big three-wheeler passenger carrier segment, with market share of about 46.9 per cent, while it improved market share in goods carrier segment by 670 basis points to 33.7 per cent in FY21.
Bajaj Auto said its non-executive director and chairman Rahul Bajaj resigned from the company with effect from April 30, 2021, and its board approved his appointment as Chairman Emeritus for a term of five years with effect from May 1, 2021. Meanwhile, Niraj Bajaj, who's a non-executive director of the company, will now serve as chairman of Bajaj Auto from May 1, 2021.
The company's board also approved a dividend of Rs 140 per share. Total payout towards dividend would amount to Rs 4,051 crore, which is about 90 per cent payout ratio. Bajaj Auto's surplus cash and cash equivalents stood at Rs 17,689 crore as on March 31, 2021, as against Rs 14,322 crore as on March 31, 2020.
The company's shares closed 1.44 per cent lower at Rs 3,834.25 on the BSE on Thursday.