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Bajaj Auto loses ground since exiting scooters in 2010
Posted on 15th April 2017
CHENNAI: Bajaj Auto's decision to stay out of the scooter market has cost the company dear in terms of market share, both in the overall two-wheeler market as well as in the motorcycle segment. According to Siam numbers, Bajaj Auto's motorcycle market share declined from 24.3% in FY10 when scooters were discontinued, to 18.3% in FY17e (estimated). This, despite the fact that the `zero' margin product CT100 has helped add nearly 4% market share since its launch a year-and-a-half ago.

In overall two-wheelers, Bajaj Auto's market share has come down from 27% 10 years ago to less than half at around 12% in FY17e. The company, however, maintains that it is more focused on margins than market share. In response to an emailed questionnaire, Bajaj Auto president (business development) S Ravikumar said, "The low-margin Indian scooter industry is not attractive to us.We make far more money exporting 1.5 million bikes and 3 wheelers across the world than anyone could ever hope to selling scooters in India. Our focus will always be high-margin segments. This is why Bajaj Auto is the world's most profitable auto company with the highest market cap in its industry in India."

Bajaj Auto may have a point there: At 22.4% in FY16, it's operating ebitda (earnings before interest, tax, depreciation and amortisation) margins are the highest in the industry, up from 13.6% in FY09. Its net profits have also gone into top gear -from Rs 656 crore in FY09 to Rs 3,652 crore in FY16. Auto analysts, however, maintain that despite its margins focus, Bajaj Auto is losing out in the domestic numbers game. For one, its dealer volumes per month are lower than the top three -Hero MotoCorp, Honda Motorcycle & Scooter India and TVS. In fact, at an average 213 units per dealer per month, Bajaj's dealer volumes are less than half of HMSI (446) and just over one-third of Hero MotoCorp (nearly 600).

Also, despite its premium focus, Bajaj has actually lost market share in the premium motorcycle segment as well from 46% in 2010 to 33% in 2017e, a 1,300-basis-point slide (100bps =1percentage point). In contrast, Royal Enfield's share has grown from 4% to 25% in the same period.

In its just announced sales for the year ended March 31, 2017, Bajaj Auto saw a 14% dip in domestic motorcycle sales in March at 1,51,449 units compared to 1,76,788 units in March 2016.

Related Companies: Bajaj Auto Limited   

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The government of Jammu and Kashmir has decided to implement the recommendations of the seventh pay commission. With this move Jammu and Kasmir has become first state to do so. The J&K employees would get their revised salaries from this month. The J&K government announced the good news from its twitter handle on Tuesday.

Trai vs Bharti Airtel, Idea Cellular: TDSAT stays predatory pricing order
Posted on 24th April 2018
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The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) in its interim order today, however, placed a qualifier on the reporting requirements, saying the Telecom Regulatory Authority of India (TRAI) will be entitled to ask for details of segmented discounts or concessions "for analysis" but that "no penalty shall be imposed on that basis" till further orders are given in the ongoing appeals by Bharti Airtel and Idea Cellular.


ICICI Securities IPO under Sebi scanner
Posted on 24th April 2018
Mumbai: The stock market regulator Securities and Exchange Board of India (Sebi) has sought details of a large investment made by ICICI Prudential Mutual Fund in the flop IPO of affiliate ICICI Securities Ltd, two people aware of the matter said.

ICICI Securities had to cut its IPO size to Rs3,520 crore from the original target of Rs4,017 crore because of poor investor interest. Of this, a large chunk was bought by ICICI MF.


RIL surges 4%, adds Rs 22,000 crore in m-cap after Jio beats Airtel, Idea in monthly subscriber addition
Posted on 24th April 2018
Shares of Mukesh Ambani-controlled Reliance Industries Ltd surged nearly 4% on Tuesday emerging as the top gainers on BSE Sensex after Reliance Jio Infocomm Ltd outperformed India’s largest telecom company Bharti Airtel Ltd and Idea Cellular Ltd in monthly subscriber addition in the month of February. According to the data released by the telecom regulator TRAI (Telecom Regulatory Authority of India) on Tuesday, Reliance Jio Infocomm added about 87.4 lakh new subscribers in February.

M&M's tractor business now worth twice as much as automotive division
Posted on 24th April 2018
Mahindra & Mahindra (M&M), the country’s biggest tractor maker, has seen its market cap swelling by over Rs 100 billion since the start of the new financial year, giving it a valuation of Rs 1.03 trillion. The stock hit a new high of Rs 839 on Tuesday, showing a cumulative increase of over 12 per cent since the beginning of April.

The only visible trigger for this price increase is the forecast of a normal monsoon by private forecaster Skymet, as well as the India Meteorological Department (IMD).


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