A meeting of the Board of Directors of Bajaj Auto Limited was held today to consider and approve the results for FY16.
An interim dividend of ` 50 per share – 500% was declared on 9th March 2016 and total amount of dividend and tax thereon of ` 1,741 crore was paid on 23rd March 2016.
The Board of Directors recommended a final dividend of ` 5 per share – 50% ( total dividend of 550% compared to previous year’s – 500% ).
The total amount of final dividend and tax thereon, including the amount paid as interim dividend, amounts to ` 1,916 crore ( previous year – ` 1,735 crore ).
In yet another year of challenging business environment in the domestic market and volatile global economic conditions riddled with uncertainties, Bajaj Auto successfully executed its business strategy to expand its share in the domestic motorcycle market, reinforce its leadership position in the domestic commercial vehicle – three-wheeler space and expand its geographical presence in the international markets.
As a result, Bajaj Auto once again delivered its best ever performance.
Highlights for Q4 / FY16 :–
ü Sale of Motorcycles – 752,519 12%
ü Sale of Commercial Vehicles – 119,939 9%
ü Turnover – ` 5,536 crore 13%
ü Operating EBITDA* – ` 1,259 crore 34%
ü Profit before tax – ` 1,200 crore 30%
ü Profit after tax – ` 803 crore 29%
ü Operating EBITDA margin* at 23.1%
* before mark-to-market (MTM) gain/loss
Regd. Office : Bajaj Auto Ltd. Complex, Mumbai-Pune Road, Akurdi, Pune 411035. Tel : 020-27472851, Fax : 020-27407380
Website : www.bajajauto.com
CIN : L65993PN2007PLC130076
Highlights for FY16 :–
ü Highest ever
¾ Turnover – ` 23,601 crore
¾ Exports, in value – ` 9,773 crore
¾ Sale of Commercial Vehicles – 535,329
¾ Sale of auto spare parts, in value – ` 2,542 crore
¾ Operating EBITDA* – ` 5,041 crore
¾ Profit before tax – ` 5,385 crore
¾ Profit after tax – ` 3,652 crore
ü Operating EBITDA margin* at 22.1%
ü Surplus cash and cash equivalents – ` 9,089 crore, after two dividend payouts of ` 3,465 crore
` in crore
Sales ( No’s )
Operating EBITDA %*
Profit before tax
Profit after tax
A summary of the results is given in Annexure I.
The excellent overall performance of the company in FY16 is a reflection of the seamless execution of the company’s business strategy.
The strategy is to reinforce the company’s leadership in the “ Premium ” and “ Super Sports ”
segment, expand the “ Price ” segment and to scale its presence in the “ Value ” segment.
¾ “ Premium ” segment,
v The Pulsar and Avenger combine recorded a growth of 8% while the segment growth for the industry remained flat.
v Thus, market share in this segment improved from 43% in FY15 to 47% in FY16.
v The new Avengers, launched in October 2015, have been very successful – sales improved from an average of 3,000 units per month to over 25,000 units per month.
v As a result, market share in this segment, in Q4 / FY16, was close to 50%.
¾ “ Super Sports ” segment,
v KTM recorded a growth of 32%.
v KTM along with the newly launched RS200 increased market share in this segment from
35% in FY15 to ~60% in FY16.
The entire industry growth in the “ Premium ” and “ Super Sports ” segment was driven by Bajaj Auto.
¾ Platina and CT combine sold over 865,000 units; a growth of 67%.
¾ The introduction of CT expanded this segment by 250 bps and the segment now represents over 23% of the total domestic motorcycle market.
¾ Market share of Bajaj Auto increased from 23% in FY15 to 35% in FY16.
The above segments represent ~40% of the total domestic motorcycle market and Bajaj Auto recorded a growth of 36% as against an industry growth of 8%. Overall, Bajaj Auto is a dominant player in these segments with a market share of 40%.
iii. “ Value ” segment
¾ Launched the iconic “ V15 ” motorcycle model in March 2016.
¾ The “ V15 ” has met with a very good response – delivered to 10,000 proud owners on day one of its launch in the domestic market.
March 2016, the first full month of launch, recorded sales of over 16,000 units in the domestic motorcycle market while April 2016 recorded sales of over 24,000 units.
¾ With a strong demand pull witnessed in the domestic motorcycle market, the Company is confident to record a significant increase in its market share in this segment also.
All motorcycles launched by the Company in the last one year have been extremely successful and has resulted in an increase in its share in the domestic motorcycle market by over 300 bps, to ~19% in March 2016.
Bajaj Auto recorded a growth of 9% in the domestic three wheeler market as against an industry growth of 1%. Consequently, share in domestic market for three-wheelers improved by 300 bps, from
44% in FY15 to over 47% in FY16.
¾ Bajaj Auto recorded a growth of 9% over FY15.
¾ With sales of over 175,000 units, share in the domestic market is a dominant 90% in FY16. ii. Diesel segment
¾ In the Small Diesel passenger carrier segment
v Bajaj Auto recorded a growth of 1% over FY15 as against a 5% decline in industry volumes.
v Share in domestic market improved to 65% in FY16 as against 61% in FY15.
v In March 2016, market share in this segment exceeded 70%.
¾ In the Large Diesel passenger carrier segment
v Bajaj Auto recorded a growth of 14% over FY15 as against a flat industry growth.
v Share in domestic market improved to 20% in FY16 as against 18% in FY15.
Motorcycle volumes fell by 4.1% to 1.46 million units while three-wheeler volumes fell by 1.6% to
280,000 units. This negative blip is entirely due to external factors, especially poor economic conditions and severe foreign currency constraints in some of the key importing countries.
However, retail sales in individual international markets reflected the Company’s strong brand proposition and its leadership position in market share.
24% in markets where it operates in Latin America, driven by the Pulsar 200NS; and
33% share in relevant markets of Africa where the Boxer continues to lead our motorcycle sales.
iii. Exports, by value, was at ` 9,773 crore ( over US$ 1.4 billion ). iv. Entered into 16 new countries in this year.
Bajaj Auto International Holdings BV is a 100% Netherlands based subsidiary of Bajaj Auto Ltd. Over the years, through this subsidiary, Bajaj Auto holds ~48% stake at a total investment of
€198.1 million ( ` 1,219 crore ) in KTM AG of Austria, fastest growing motorcycle brand in the world. As on 31st March 2016, market value for the same was over €637 million ( ` 4,807 crore ).
For KTM, calendar year 2015 has been a record year.
It recorded its –
¾ Sales; 183,170 motorcycles, a growth of 15%.
¾ Turnover; €1.02 billion, crossing the billion euro mark and recording a growth of 18%.
¾ Profit after tax; €63.9 million, a growth of 12%.
Proportionate profit after tax of €30.6 million ( ` 221 crore ) has been accounted in the consolidated results of Bajaj Auto Ltd.
In its Annual General Meeting for the calendar year 2015, held on 21st April 2016, KTM AG has
declared a dividend of €2.0 per share, compared to €1.5 per share for the year 2014.
After two dividend payouts totalling to ` 3,465 crore, surplus cash and cash equivalents as on
31st March 2016 stood at ` 9,089 crore as against ` 8,455 crore as on 1st April 2015.
FY16 saw Bajaj Auto win several awards for its motorcycles, most of them for the Pulsar RS200 and the AS200. The Pulsar RS200 alone has won a record 15 awards in the course of the year.
Publications / TV Channels
/ Auto Portals
Awards for Bajaj Auto
Autocar / Times Now
Pulsar RS 200: Bike of the Year
Pulsar RS 200: Reader’s Choice Bike of the Year
BBC Top Gear
Pulsar RS 200: Reader’s Choice Bike of the year
Pulsar AS 150: Bike of the Year (up to 160 cc) Pulsar RS 200: Bike of the Year (up to 200 cc)
Pulsar RS 200: Viewer’s Choice Bike of the Year
CT 100: Creative TV Commercial of the Year
Pulsar RS 200: Viewer’s Choice of the Year
Pulsar RS 200: Two Wheeler of the Year (by Jury) Pulsar RS 200: Motorcycle of the Year up to 250CC
Pulsar RS 200: Motorcycle of the Year
Platina ES: Bike of the Year up to 125cc Pulsar RS 200: Bike of the Year up to 250cc Pulsar RS 200: Best Value for Money Bike
Pulsar RS 200- Best Two Wheeler Commercial of the Year
Pulsar RS 200: Executive Bike of the Year
Pulsar AS 200: Executive Bike of the Year
Pulsar RS200: Premium Bike of the Year
25th May 2016.
Bajaj Auto Limited
(` In Crore)
progress and stock-in-trade
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