Bajaj Auto Limited faced a challenging quarter in view of the coronavirus pandemic that resulted in lockdown and further disruption in supply chain
Bajaj Auto has released their Q1 FY21 sales figures and it can be seen that profits has dipped by more than 50 percent following stalled operations in view of the COVID-19 pandemic. The impact of the virus could not only be seen in terms of domestic sales but also where company exports were concerned. Though operations have commenced, the company is still facing some constraints in terms of supply chain and is slowly but surely edging back to normalcy.
Taking into account domestic sales of two wheelers, the company sold 1,85,981 units in Q1 FY21 as against 6,10, 936 units in the same period of the previous financial year. Commercial vehicle sales dipped to 5,282 units in Q1 FY21 as compared to 86,217 units sold in the same period of the previous year, thus taking total domestic sales to 1,91,263 units as compared to 6,97,153 units sold in the corresponding quarter of the previous year.
Total exports of two wheeler and commercial vehicles also fell to 2,51,840 units in the Q1 FY21 period as against 5,50,021 units sold in the same period of the previous year while the company noted total sales of 4,43,103 units in Q1 FY21, down 64.5 percent as against 12,47,174 unit sales in the same period of 2020.
Falling Profits
Bajaj Auto reported that profits declined t0 Rs.528.04 crores in the past quarter as against Rs.1,125.67 crores in the same quarter of the previous year. Revenue from profits also declined to 60.3 percent YoY to Rs.3,079.24 crores in the April to June 2020 quarter. The market share of three wheeler passenger vehicles dipped 23 percent in Q1 FY21 as against 44 percent in Q1 FY20
Sales in commuter and sports segments
Where domestic motorcycle sales were concerned, the overall share stood at 20.7 percent as against 18.5 percent in FY20. The company sold a total of 1.2 lakh units in the mileage segment which include 32,000 units of the Bajaj CT, 45,000 units of the Platina range and 32,000 units of the Pulsar 125. Sales of over 69,000 units on the sports segment saw the Bajaj Pulsar 150 amass the most sales of 49,000 units while in the Super Sports segment, the company sold a total of 6,000 units out of which 2,500 units of the Dominar RS 200 were sold and 3,400 units of KTM and Husqvarna models.
The commercial vehicle segment bore the most brunt of the lockdown. Of the RE brand of three wheelers, the company currently commands an 80 percent market share. Of the Maxima brand of passenger carriers, it has a market share of 27 percent while in the Maxima brand of good carriers, the company holds a market share of 34 percent.
