Sales were down due to tough market conditions, though exports increased by 2.3%. The launch of the KTM DUKE bike increased revenues, with 11,000 units sold domestically and 24,000 units abroad. Cash flow from operating activities increased by Rs. 1,400 crore due to quicker collections and longer supplier credit terms. For the year, net sales were flat at Rs. 20,348 crore while net profit grew by 6.6% to Rs. 3,243 crore. In the most recent quarter, unit sales were 782,669 with revenues of Rs. 4,890.61 crore and a PAT of Rs. 621.62 crores.

1. Annual Report Analysis
Rajat Garg
Nischay Saxena
Anmol Kaur Dhillon

2. Sales have reduced due to tough market conditions.
Sales in “commuter segment” was affected due to some
problems in Discover model which was addressed and
performance is expected to increase in further quarters.
However Exports of bikes have increased by 2.3%.
SALES PERFORMANCE

3. EXPORT PERFORMANCE
Exports of the company has been on the higher side
41.6% of the sales is exports sales for the company.

4. DRIVERS
Bajaj Auto launched KTM DUKE (High end bike) which was a
solid achievement in terms of revenue.
Company sold 11000 units in domestic market and 24000 units in
foreign market .
Depreciation of the Indian rupee has a major role in contributing
to the revenue of the company as company’s exports have
increased.
Additional investments in fixed income securities and FD with
banks from surplus reserves have increased the income for the
company.

5. DRIVERS
 A new initiative called ‘Lean on Investment’ was launched in-house as
well as with suppliers to minimise investments. This resulted in reducing
the investment needed by Rs 78 crore both in-house and across the supply
chain.
 TPM (Total Productive maintenance) philosophy was initiated in three
plants contributing to significant improvement in EBIDTA Margin.
 Significant reduction in energy consumption has been achieved through
loss reduction, effective operation controls and technological
upgradations.

6. CASH FLOW ANALYSIS
Cash flow from operating activities have increased by 1400cr ,
mainly due to release of working capital by quick collection
period and longer credit terms with the suppliers.
Payment of dividends is the main source of cash outflow from
financing activities
Various investments in Other investments and banks has been
made with the excess surplus.

7. Capex
 Technology
1. Technologies like Fuel Injection, five speed gear box, Multi valves, DTSi and
light weighting have been employed.
2. Anti Lock Braking system was introduced on KTM Duke 390
 Process
1. R&D has been expanding its team size in areas of design, analysis.
2. R&D continued to enhance its design, computing, prototype manufacturing
and validation facilities.

8. CORPORATE GOVERNANCE
Company policy is to have blend of independent board of directors to
maintain the independence of board and to separate the board functions of
governance and management.
Voting through electronic means.
The two plants ,Waluj and Chakan have implemented rain water harvesting
and ground water recharging and are now certified as ‘Water Positive’.
The Waluj plant (Export Hub) was awarded by National Energy
Management of the Confederation of Indian Industry (CII), as an ‘Excellent
Energy Efficient Unit’.

9. KEY HIGHLIGHTS from 2013-14
Net sales and other operating income was flat at Rs 20,348 crore.
Sales in volume terms reduced by 8.7%.
Exports rose by 2.3% .In terms of revenue, however, depreciation of the
Indian rupee helped in lifting exports by 22.1% to Rs 8,199 Crore.
At Rs 4,305 crore in 2013-14, Company’s operating EBITDA was 7.8%
higher than the previous year. The operating EBITDA margin was 21.2%
of net sales.
Profit before tax (PBT) grew by 8.6% to Rs 4,632 Crore.
Profit after tax (PAT) was up by 6.6% at Rs 3,243 Crore.

10. Key highlights from quarter ended
31.03.2015
 Sales(in number) - 782,669 units
Sales(revenue) – Rs.4,890.61 crore
 Expenses – Rs.3,965.34 crore
 Finance cost – Rs.6.26 crores
 Tax expense - Rs.300.39 crores
 PAT - Rs.621.62 crores

11. Thank You!