Buy Bajaj Auto at Rs 2404.25 and add on dips to Rs 2170-Rs 2240 for a Target of Rs 2638 in 1 quarter :: HDFC Securities

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BAL announced its Q3FY15 results recently, which were ahead of street estimates. Total quarterly income rose 10.2 percent over last year to Rs.5,657 crore aided by
higher export sales. Export sales volumes (contributed 49 percent to total sales) grew by 16 percent Y-o-Y to 4.9 lakh units, which offset slowdown in domestic sales.
Domestic motorcycle sales fell 13.5 percent on yearly basis to 4.94 lakh units in the quarter gone by.
Key highlights of Q3FY15 results:
 Net sales rose 9.9% to Rs.5520.01 cr compared to Rs.5024.76 cr in the same quarter last year.
 Realizations were up 10.9% YoY and 1.6% QoQ, volumes de grew 0.9% YoY and 6.7% QoQ.
 EBITDA came in at Rs.1226.8 cr, a growth of over 8% YoY and this is the highest ever. EBITDA margin came at 21.7% (-40bps YoY and +280bps QoQ). Higher EBITDA
margin was due to higher realizations and foreign exchange gain of around Rs.79 crore.
 Other expenses for current quarter and nine months include contributions of Rs.13.73 crore and Rs.35.41 crore respectively, made by the Company towards
Corporate Social Responsibility (CSR).
 PAT came in at Rs.861.2 crore which was lower by 4.8% on a YoY basis, mainly due to 57.1% YoY (-16.1% QoQ) fall in other income. Timing difference of investments
in FMPs led to the fall in other income.
 As on 31st December 2014, BAL had a Cash and Cash equivalent of Rs.7568 crores as against Rs.8313 crores as on 30 th September 2014

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