Bajaj Auto drops 7% after the board postpones the buyback proposal and states that more thought is n



Repurchase at Bajaj Auto: The board of Bajaj Auto agreed to postpone consideration of the share buyback plan that was presented to it for discussion at its meeting on June 14. Shares of Bajaj Auto fell 7.13% to Rs 3,603.75 on the BSE from their previous closing of Rs 3,880.60. Although the large-cap stock is trading below the 5-day, 20-day, and 50-day moving averages, it is trading above the 100-day and 200-day moving averages.

In a regulatory filing, the business stated that the proposed strategy will not be implemented at this time because it needs "additional discussions." ". We would like to let you know that the Board of Directors of the Company concluded today, June 14, 2022, that additional thought is needed before deciding on the repurchase proposal. As a result, the subject has been postponed "according to a stock exchange filing by Bajaj Auto.


When a corporation buys its outstanding shares, commonly referred to as repurchasing shares, it lowers the number of shares that are accessible on the open market.

Companies repurchase shares for a variety of purposes, including to boost the value of the shares still in circulation by cutting back on supply or to prevent other shareholders from acquiring a controlling interest.

The last time the corporation repurchased shares was in 2000 when shareholders agreed to buy up to 18 million equity shares for Rs 400 each.


Since FY08, Bajaj Auto has increased its dividend payments to shareholders, going from Rs 20 per share in FY08 to Rs 140 at the end of FY22.

Bajaj Auto: Q4 Results & May Sales


Sales figures for May were less than projected, according to Bajaj Auto. It stated that 2.75 lakh units were sold overall in May. Sales volumes dropped more than 34% from their pre-pandemic levels in May 2019 and only increased 1% year over year in the preceding month.


The company's bad export month was the main contributor to the lackluster sales result. May saw a 15% year-over-year decline in two-wheeler exports to 1.53 lakh units and a 67% year-over-year decline in three-wheeler exports to 10,163 units.

In comparison to the equivalent quarter of the prior fiscal year, Bajaj Auto Ltd. recorded a 10% increase in net profit for the quarter ending in March 2022, coming in at Rs. 1,469 crores as opposed to Rs. The extraordinary item of Rs 315 crore accrued as an incentive receivable from the Maharashtra government under an incentive scheme was the primary cause of the increased profit. However, operating revenue decreased 7% to Rs 7,975 crore over the examined period.

Notably, Bajaj Auto announced May sales figures that were below expectations. It sold 2.75 lakh units in total during the month, which fell short of the 3.12 lakh prediction made by Nomura India Securities. Sales volumes were down more than 34% from pre-pandemic levels in May, as recorded in May 2019, and just 1% higher year over year.


The company's bad export month was the main contributor to the lackluster sales result. May saw a 15% year-over-year decline in two-wheeler exports to 1.53 lakh units and a 67% year-over-year decline in three-wheeler exports to 10,163 units.


Bajaj Auto's overall exports fell 22% in May compared to the same month last year, but domestic sales increased by 85%.


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