Bajaj Auto 2005-06 results in full

Ever seen a full year's worth of summaries from a major two-wheeler maker? This is the full text of what the full thing looks like. Minus the irrelevant sections like three-wheelers, other assets and subsidiaries (like life insurance and stuff). I haven't tried to simplify what follows for two reasons. 1) it removes the flavour of the original. And 2) I wouldn't know how to. What is EBITDA anyway, eh?

BAJAJ AUTO RESULTS:
FINANCIAL YEAR 2005-06

A meeting of the Board of Directors of Bajaj Auto Limited was held today to consider and
approve the results for the financial year 2005-06.

1. HIGHLIGHTS OF THE YEAR

• Motorcycles sales – 1.91 million – 32% - well above industry growth of 19%
• 2 & 3-Wheeler sales – 2.28 million – 25%
• Turnover Rs. 81.06 billion: 28%
  
• Operating EBITDA Rs. 13.69 billion – 47%
• Operating EBITDA margin 17.9% – 220 basis points
• Profit before tax Rs. 15.81 billion – 45%
  
• Net profit Rs. 11.23 billion – 47%

2. FINANCIALS
The summary of audited results of Bajaj Auto (not consolidated) is as under:

Rs in million	FY 2005-06	FY 2004-05
Turnover (net of excise	81,064	63,228
Gross Profit after interest but before VRS, depreciation and taxation	17,943	13,208
Compensationpaid under VRS	226	490
Depreciation	1,910	1,854
Profit before taxation	15,807	10,864
Provision for taxation (including deferred tax)	4,791	3,196
Profit after Tax	11,016	7,668
Tax credits of earlier years, prior period expenses, net	217	-18
Net profit for the year	11,233	7,650
Earnings per share (Rs)	111	75.6

3. DIVIDEND
The Board of Directors recommended a dividend of Rs. 40 per share. (400%). The total
amount of dividend and tax thereon amounted to Rs. 4,615 million. Dividend paid in the
previous year was Rs 25 per share (250%).

4. TURNOVER, MARGINS & PROFITS AFTER TAX

• Turnover for the year - Rs. 81.06 billion v/s Rs 63.23 billion –increase of 28%.
• Sales (net of excise duty) - Rs. 74.69 billion v/s Rs 57.24 billion in 2004-05 – increase of 30%.
• Operating EBITDA - Rs 13.69 billion from Rs 9.3 billion in 2004-05 – increase of47%. Operating EBITDA margins improved by 220 basis points to 17.9%.Improvement in margins for the year is due to increase in sales of motorcycles,favourable mix change – higher number of motorcycles in the value and premium segment, higher exports and tighter control over material and fixed costs.
• Profit before tax Rs 15.81 billion – increase of 45%.
• Net Profit after tax Rs 11.23 billion – increase of 47%.
• Pre-tax return on operating capital rose to 174%.

5. SALES

SALES (Nos.)	2005-06	2004-05	Change
Motorcycles	1,912,306	1,449,710	32%
2-Wheelers	2,029,176	1,602,646	27%
3-Wheelers	252,054	222,053	14%
Total	2,281,230	1,824,699	25%
Exports(out of the above)	250,204	196,710	27%

Motorcycles

• Motorcycle sales continue to outgrow the industry – 32% growth v/s industry growth of 19%.
• Market share in Motorcycles improved from 28% in 2004-05 to 31% in 2005-06.
  
• During the year a cruiser bike Bajaj Avenger DTS-i and Bajaj Discover 110cc were launched. Bajaj CT 100 was upgraded with ExhausTEC and SNSsuspension while the Pulsar 180 was upgraded in terms of looks.
• ‘SEGMENT LEADER’ in the performance segment. Bajaj Pulsar twins crossed cumulative landmark sale of ‘ONE MILLION’.
• ‘SEGMENT LEADER’ in the new 125cc category of the value segment. The Bajaj Discover DTS-i sold over 330,000 vehicles during the year. In the valuesegment the new Bajaj Discover 110cc that was launched in December 2005 sold over 113,000 vehicles. To combat the intense competition in the value segment and to set new style benchmarks, a new bike the ‘BAJAJ PLATINA’ was launched in April 2006.
• ‘SEGMENT LEADER’ in the price segment. Bajaj CT 100 sold over‘ONE MILLION’ vehicles in the current year.

3. Two wheelers : skipped!

Exports

• Exports in volumes and value are tabulated in the table given below:

	2005-06	2004-05	Change
Total 2-Wheelers	174,907	130,945	34%
Total 3-Wheelers	75,297	65,765	14%
Grand Total	250,204	196,710	27%
Value Rs in million	8,990	6,949	29%

• Bajaj Auto continues to be the ‘NUMBER ONE’ exporter of 2&3-wheelers.
• Over 100,000, 2&3-wheelers sold in Sri Lanka. Market leader in Central America accounting for over 50% of motorcycles sold.
• Joint Venture Company with majority equity holding to be set-up in Indonesia in Q2/ 2006-07.
• Assembly operations by Distributor in Nigeria established. Significant volumes expected in the coming years considering the one million per annum motorcyclemarket in Nigeria.
• Sales of Bajaj motorcycles in Iran expected to commence from July 2006.

6. NON-OPERATING INCOME: Skipped!

7. ASSOCIATES, SUBSIDIARIES & JOINT VENTURES: Skipped!

Sanjiv Bajaj
Executive Director
19th May 2006

Annexure to Press release dated 19th May 2006. Click here