790 Duke pic used only for representation

Bajaj earnings from KTM are growing and with Husqvarna’s aggressive reinvention planned, it will be an even bigger entity in the times to come…

Actually, an apter title of this story would be – how much has Bajaj earned through KTM in quarter three of financial year 2019 because that is what we will keep this limited to, for now. But first some quick facts…

Bajaj has a company called as Bajaj Auto International Holdings BV which is NOT based in India! It is this Netherlands based company – a 100 percent subsidiary of Bajaj Auto, which has a 47.99 percent stake in the Austrian brand KTM. The total investment from Bajaj to acquire this stake is € 198.1 million which is about 1219 crore in Indian rupee.

Bajaj Earnings from KTM

Now, let us present to you the quantum of revenue that Bajaj has earned through the sale of KTM motorcycles in quarter three of this financial year.

  • Volumes – As many as 54,412 KTM motorcycles were sold during this quarter which is an increment of 13 percent over Q3 FY18 (wherein it registered sales of 48,204 units).
  • Revenue – This has resulted in a net revenue of € 359.776 which is an increase of 15 percent over the comparable quarter last year.
  • Gross Margin – The company earned a gross margin of € 109.272 which is again 18 percent higher than Q3 FY18.
  • Profit After Tax – At € 30.370, the hike in profit is whopping 78 percent.

As a result of its holding in KTM, the proportionate profit to Bajaj is € 14.6 million which equates to about ₹ 120 crore.

Bajaj earnings from KTM
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Now compare this with Bajaj Auto’s standalone performance for quarter three FY19…

  • Volumes – 1,259,828 units
  • Revenue – ₹ 7879 crore
  • Profit After Tax – ₹ 1102 crore

So, for this quarter Bajaj’s profit from KTM was about 10 percent of their overall profit.

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It must be known that KTM was struggling when Bajaj picked up a big stake in the company in 2007. With the help of Bajaj, KTM now is a massive entity and clocked sales of over 2.70 Lakh last year! With Husqvarna also being looked at aggressively, this percentage share is bound to increase in the times to come.

In continuation, if you want to know Bajaj’s per motorcycle margins, you can read this story




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