As promised,

Here is the thread on AR 19-20 of Bajaj Auto

1/

Bajaj Auto

The World’s Favourite India

HAMARA KAL

@suru27 @finbloggers

2/

Chairman’s Letter

•In FY20, compared to industry, the company did very well.

•COVID-19 induced lockdown wiped out 40 days, 8 in
FY20, 32 in FY21.

•Demand in Q1&Q2 will be muted.

•Going forward, banking on higher exports & operational efficiencies.

Notes from MDA

“This great Nation will endure as it has endured, will revive and will prosper. So, let me assert my firm belief that the only thing we have to fear is fear itself… which paralyzes efforts to convert retreat into advance.”

~Franklin Roosevelt, March 1993

4/

Notes from MDA

•Motorcycle Domestic Industry Growth Nos: FY18: 13.7%, FY19: 7.8%, FY20: -17.5%

•That was worst ever percentage fall since FY11

•3W Domestic Industry Growth Nos: FY19: 10%, FY20: -9.2%

5/

Notes from MDA

Bajaj’s performance on this backdrop:

•Turnover: 31652 Cr (ATH), down 0.5% YoY

•EBITDA: 5253 Cr, down 1% YoY

•EBITDA Margin 17.6% Vs 17.5% YoY

•PBT 6580 Cr

•PAT 5100 Cr (ATH)

•Cash: 14322 Cr

Bajaj Auto did well compared to the industry

6/

Notes from MDA

Regulations increased cost of ownership of Motorcycles leading to a decline in volumes:

•Compulsory 3rd party insurance

•More rigorous braking norms from April 2019

•Implementation of more stringent emission norms under BS-VI from April 2020

7/

Notes from MDA

M segment witnessed a sharp downturn in FY20. Bajaj also faced the heat. But, it managed to mitigate with introduction of new models.

Bajaj was the leader in the sports segment 44.7%, market share in FY20.

8/

Notes from MDA

KTM

•Sold over 60K units, growing 26% in FY20 — the only major brand to record high double-digit growth

•Strengthened its presence in the 125cc premium sports.

•Revamped its existing models with the launch of the 2020 range.

9/

Notes from MDA

Scooters: The Legendary Chetak Rides Again

•Re-introduce the Chetak as a best-in-class electric scooter with an iconic design

•LED headlight with daytime running lamps, electronic switches & rear LED blinkers.

•Embedded with mobility solutions

10/

Notes from MDA

3Ws & Qute

•Total 3W sales down 14.9%

•Exports declined due to severe permit restrictions in Egypt.

•Qute launched in 4 states: Kerala, Gujarat, Odisha & Rajasthan. Total Sales in FY20 942

•Partnership with Uber in Bangalore sold 270 units of Qute.

12/

Notes from MDA

BS-VI Transition

•R&D upgraded 23 2W variants & 12 CV variants in a seamless manner to BS-VI in Q3 & Q4.

•Widest portfolio & the highest number of variants that have been upgraded to BS-VI compared to any other automobile companies in India

13/

Notes from MDA

Total Productive Maintenance (TPM)

‘The TPM way’ has been extended externally to include Bajaj Auto’s
•Vendor
•Dealers
•Distributors
•Overseas Distributor Plants

With an aim to create a work culture of achieving across-the-board excellence.

14/

Financials

•Balance Sheet

•Profit & Loss Account

15/

Financials

•Statement of Changes in Equity

•Cash Flow Statement

16/

Now before going to the last tweet of the thread let us share a trivia with you.

Did you know?

Sanjiv Bajaj has a higher shareholding in Bajaj Auto compared to Rajiv Bajaj

17/

You may want to have a look at the transcript of the last 6 quarters’ concalls here:

https://smartsyncservices.com/bajaj-auto-ltd/ 

AR & concall notes are the best sources of information for any business.

So do L&R this thread so that maximum people can benefit.

End