Q2FY13 Results: Bajaj Auto distinctly ahead of Hero Motocorp

Riken Mehta

Hero MotoCorp may be India’s largest two-wheeler maker by sales but it has been trailing number two player Bajaj Auto on most other parameters. Its net sales decline, for instance, was far higher than Bajaj in the second quarter. And while its profits declined, Bajaj Auto saw a marginal increase and operating margins too continued to lag Bajaj almost 600 bps.

The only positive one can pick from the Hero Moto numbers was the realisations which rose on the back of improved product mix and higher spare part sales.

Hero Moto also scaled down its guidance from 10% to 5-6% growth in FY13 in line with SIAM’s industry guidance.

The market share of Bajaj Auto in domestic motorcycle segment jumped from 23% in April to 25.7% in September 2012. Hero Moto’s market share slumped from 56.4% to 50% in the same period. 

Hero still has a big lead over Bajaj when it comes to market share and units sold, but Hero is definitely feeling the heat amid the market-wide slowdown and increased competition.
Particulars Bajaj Auto Hero Moto
Net Sales Growth
YoY -4.1% -11.0%
QoQ 1.9% -17.0%
PAT Growth
YoY 2.0% -27.0%
QoQ 3.1% -28.4%
Material Cost
YoY -5.1% -10.7%
QoQ 1.7% -18.1%
Vehicles Sold
YoY -9.9% -13.7%
QoQ -2.8% -18.8%
Total Income/Vehicle 48128 38916
YoY Growth 6.4% 3.2%
Net Profit/Vehicle 7059 3,305
YoY Growth 0.1% -15.40%
Operating Margins 19.7% 13.9%
Market Share 25.7% 50.0%

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