Bajaj Autos Q4FY17 net profit stood at Rs 802 crore; volume growth down 10%

Highlights: 

• A Bloomberg poll estimated Bajaj Auto to report net profit of Rs 842 crore.
• Volume in this period, declined by 9.72% with sales of 787,627 units.
•  International business was affected due to external factors like economic and political uncertainties.

Bajaj Auto missed analysts estimates by witnessing 16% decline in its fourth quarter ended March 31, 2017 result.

The company posted standalone net profit of Rs 801.82 crore, recording decline of 15.53% compared to Rs 949.33 crore in the corresponding period of the previous year.

Q4FY17 net profit is down by 13.28% from Rs 924.62 crore in the preceding quarter.

A Bloomberg poll estimated Bajaj Auto to report net profit of Rs 842 crore.

Volume in this period, also declined by 9.72% with sales of 787,627 units compared to 872,458 units sold in the similar quarter of the previous year.

For entire FY17, volume growth tumbled by 5.84% with overall sales of 3,665,950 units as against 3,893,581 units a year ago same period.

Decline in volume growth resulted total revenue of Rs 5,212.43 crore, down by 8.71% year-on-year (YoY) and 2.64% quarter-on-quarter (QoQ).

The company's operating EBITDA margin stood at 21.7% and surplus cash grew by 36% to Rs 12,368 crore this Q4.

On segment-wise break up, domestic motorcycle market stood ar 18% in FY17, while commercial vehicle domestic market improved by 210 basis points to 49.5% in the year.

However, international business was affected due to external factors like economic and political uncertainties sharp devaluation of currencies and scarcity of US dollar in some key importing countries, said Bajaj Auto.

In its meeting held on Thursday, the company's board of directors approved a dividend of Rs 55 per share – amounting to Rs 1,916 crore.

Share price of Bajaj Auto was trading at Rs 3,003 per piece down Rs 29 or 1% on BSE.