Bajaj Auto Limited Forcasted Quarterly Results for FY16.

1. Presented by:
ANKIT KUMAR GUPTA
Bajaj Auto Ltd

2. Automobile Industry in India
 The automobile industry in India is expected to be the
world's third largest by 2016, with the country currently
being the world's second largest two-wheeler
manufacturer.
 Two-wheeler production is projected to rise from 18.5
million in FY15 to 34 million by FY20.
 Automobile exports grew at a CAGR of 14.65 per cent
during 2010-15.
 Two wheelers accounted for the largest share of exports at
69.4 per cent in FY15.
 Exports of three wheeler vehicles registered around 11.1
per cent share in exports in FY15.
 The government aims to develop India as a global
manufacturing as well as a research and development
(R&D) hub. It has set up National Automotive Testing and
R&D Infrastructure Project (NATRiP) centres as well as a

4. Domestic Market Share for 2014-15 %
Passenger Vehicles 13
Commercial Vehicles 3
Three Wheelers 3
Two Wheelers 81
Grand Total 100

5. BAJAJ AUTO LTD
 Manufacturers of Scooters, Motor Bikes, 3-
Wheelers, Spare parts.
 Bajaj Auto came into existence on November 29,
1945 as M/s Bachraj Trading Corporation Private
Limited.
 Initially it used to import the two wheelers from
outside, but from 1959 it started manufacturing of
two wheelers in the country.
 It is India's largest and the world's 4th largest two-
and three-wheeler maker.
 It offers products in all motorcycle segments—
Platina (entry), Discover (executive) and Pulsar
(premium).

7. SEGMENT INFORMATION
 (a) Primary segment: Business segment ( Rs in
Crore)
i. Automotive- Total Revenues is 21,821.26
ii. Investments- Total Revenues is 376.96
 (b) Secondary segment: Geographic segment (Rs
in Crore)
i. India- Total Revenues is 12,432.38
ii. Rest of the world- Total Revenues is 9,765.84

8. Motorcycle highlights
PARTICULAR
S
H1
2015-16
H1
2014-15
FULL YEAR
2014-15
Domestic 955,148 952,492 1,770,778
Export 823,184 821,519 1,521,306
Total 1,778,332 1,774,011 3,292,084
Commercial vehicle highlights
PARTICULAR
S
H1
2015-16
H1
2014-15
FULL YEAR
2014-15
Domestic 117,832 130,460 234,345
Export 173,461 139,541 284,772
Total 291,293 270,001 519,117

9. i. M1 Mileage segment
 Bajaj, represented by CT100 and Platina, in the
segment showed a remarkable growth of 74% in
H1/2015-16 over H1/2014-15.
ii. Sports segment
 Bajaj is represented by Pulsar and Avenger in the
segment.
 With sales of around 326,000 units in this segment
of the domestic market, Bajaj Auto continues to be a
leader with market share of 44%.
iii. Super sports segment
 Bajaj is represented by Pulsar RS200 and KTM in
the segment.
 Together with KTM, Bajaj Auto dominates this
segment with sales of over 36,000 units in H1/2015-
Motorcycle Segment

11. Forecast Revenue for FY 2016 Quarterly (in Rs. Cr.)
PARTICULARS Dec '15 Forcasted Mar-16 Notes
Net Sales/Income from operations 5,564.90 5787.496
(A)
EXPENDITURE
Consumption of Raw Materials 3,383.43 3434.18145 (B)
Purchase of Traded Goods 345.26 350.4389 (B)
Employees Cost 230.24 234.8448 (C)
Other Expenses 471.29 480.7158 (C)
P/L Before Other Inc. , Int., Excpt. Items & Tax 1,096.62 1287.31505
Other Income 199.68 199.68 (D)
P/L Before Int., Excpt. Items & Tax 1,296.30 1486.99505
Interest 0.07 0.05
P/L Before Tax 1,296.23 1486.945
Tax 394.74 446.08 (E)
Net Profit/(Loss) For the Period 901.49 1040.865 (F)

12. NOTES (Key Assumptions):-
(A)
 For the industry as a whole, the number of motorcycles
sold in India grew by merely 2.5% in FY2015.
 Total motorcycle sales in India plus exports grew by 4.3%
in FY2015.
 Exports, in terms of the number of two-and three-wheelers,
increased by 14% to 1.81 million units. In terms of value,
exports grew by 14.6% to US$ 1.5 billion.
 We expect the Net Sales to increase by 4% for the next
quarter as the overall growth is 7% in FY2015.
 It sold over 284,000 vehicles in FY2015 — representing a
9.2% growth in exports.
 BAL continues as India’s largest exporter of three-wheelers
and, in volume terms, accounted for 70% of such exports.

14. (B)
 The Company also imports raw materials and
components for its motorcycles etc.
 We expect the Consumption of Raw materials and
purchase of trade goods to go up by 1.5% for the
next quarter.
 Spare sales grew 11% YoY and 12% on YTD basis.
(C)
 We expect Employee cost and other expenses to rise
up by 2% as per expansion plans.
 With launch of V150, it plans to upgrade consumers
from 100cc to 125cc executive segment.
(D)
 Most of the commodity benefits were realised in
1HFY15. Saw marginal benefits in Q3FY15 from
lower aluminum and steel prices. Could see some

15. (E)
 Tax rate is taken at 30%.
(F)
 Net Profit is estimated to increase to 1210 croes for
the next quarter. The Company’s current installed
capacity is 6.06 million units per annum. The
Company plans to increase the installed capacity to
around 6.12 million units per annum by March 2016.
 New permits opportunity for 3Ws could be in the
range of 40-50K units for FY17 in domestic market.
 Expects to dispatch 1,500 units of goods version in
Feb and March. Thereafter, expects a steady run rate
of 1500 units a month. Initially, goods version will be
launched in domestic market.

16. STOCK PERFORMANCE

17. CONCLUSION
 Bajaj Auto is a diversified play with domestic
motorcycle, three wheeler and export portfolio.
 We can expect it to be the key beneficiary of new
launches (initial success in the
Economy/Premium segment visible), rising
premiumisation in motorcycles and huge potential
in export markets.
 The Company has continued with its strong
performance.