Bajaj Auto rose 2.65% to Rs 1,947.60 at 12:23 IST on BSE after the company's operating earnings before interest taxes depreciation and amortization margin rose to 21.3% in Q1 June 2013 compared with 18.9% in Q1 June 2012.
The result was announced during trading hours today, 19 July 2013. The stock had fallen as much as 1.96% at the day's low of Rs 1,860.10 in early trade. After the result announcement, the stock jumped as much as 3.83% to hit the day's high of Rs 1,970.
Meanwhile, the S&P BSE Sensex was up 33.26 points, or 0.17%, to 20,161.67.
On BSE, 1.10 lakh shares were traded in the counter as against an average daily volume of 32,012 shares in the past one quarter.
The stock hit a high of Rs 1,970 and a low of Rs 1,860.10 so far during the day. The stock had hit a record high of Rs 2,228.95 on 3 January 2013. The stock had hit a 52-week low of Rs 1,423.10 on 18 July 2012.
The stock had underperformed the market over the past one month till 18 July 2013, rising 3.85% compared with the Sensex's 4.71% rise. The scrip had, however, outperformed the market in past one quarter, rising 5.89% as against Sensex's 5.85% rise.
The large-cap company has an equity capital of Rs 289.37 crore. Face value per share is Rs 10.
Bajaj Auto's operating earnings before interest taxes depreciation and amortization (EBITDA) rose 13.79% to Rs 1056 crore in Q1 June 2013 over Q1 June 2012.
Net profit rose 2.69% to Rs 737.68 crore on 0.93% increase in income from operations (net) to Rs 4911.09 crore in Q1 June 2013 over Q1 June 2012.
Bajaj Auto said that it benefited from its strategy to hedge future earnings from exports, as the Indian rupee declined against the US dollar. While exports were almost flat at $327 million, in rupee terms, exports recorded a growth of 10% ro Rs 1876 crore in Q1 June 2013 over Q1 June 2012.
The company said that taking into account the current trend of the rupee against dollar and current position of hedged contracts, a further benefit on account of depreciating rupee would accrue to the company in the coming quarters.
The company reported a 24% rise in sale of commercial vehicles to 1.19 lakh units in Q1 June 2013 over Q1 June 2012. Sale of commercial vehicles in the domestic market rose marginally by 0.49% to 45,057 units and exports jumped 44% to 74,067 units in Q1 June 2013 over Q1 June 2012.
Bajaj Auto reported a 12% decline in total motorcycle sales to 8.60 lakh units in Q1 June 2013 over Q1 June 2012. Motorcycle sales in the domestic market fell 8% to 5.71 lakh units and exports declined 21% to 2.88 lakh units in Q1 June 2013 over Q1 June 2012.
The company's share in the domestic motorcycle market was approximately 23% in Q1 June 2013 as against approximately 24% in the year ended March 2013.
The company said that the labour unrest and stoppage of work in June 2013 at the manufacturing unit in Chakan caused a loss in sales of roughly 20,000 'Pulsar' brand of motorcycles.
At the Chakan plant, the company had signed a settlement dated 21 May 2010 with the union Vishwa Kalyan Kamgar Sanghatana (VKKS) for a period of nine years from 1 April 2010 to 31 March 2019. VKKS, however, terminated that settlement and demanded that each worker at the plant should be allotted 500 equity shares of the company at Re 1 per share. The management refused the demand, due to which the union commenced a strike from the first shift of 25 June 2013, which is still continuing.
The company said it obtained an injunction order from the Industrial Court in Pune, against the coercive activities of the union. The injunction is in force. The company has implored the Labour Court to declare the strike resorted by the union as illegal, under the MRTU and PULP Act, 1971. The hearing of the case is fixed on 22 July 2013. The management has also filed a case before the Industrial Court in Pune for declaring the termination of settlement as illegal. The hearing for the case is fixed on 5 August 2013.
The company said that currently, around 700 employees including unionized workmen, trainees, staff, etc are reporting to work. Production at Chakan plant is around 1700 motorcycles per day. The plant at Waluj has commenced production of Pulsar motorcycles and is currently producing around 1250 motorcycles per day.
The company said that value-added tax (VAT) refund receivable on 31 March 2013, was Rs 1120 crore. Of this Rs 47 crore was received in April 2013 and Rs 840 crore was received on 4 July 2013.
Surplus cash and cash equivalents stood at Rs 6391 crore as on 30 June 2013 as against Rs 5706 crore as on 31 March 2013.
Bajaj Auto is India's second largest two-wheeler maker after Hero MotoCorp.
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