Let me start by clearly saying that I am delighted with your Company's results forFY2019 and proud of the excellent work carried out by your Managing Director and his team.
FY2019 has not been a particularly brilliant year from an economic point of view. Thesecond advance estimate of the Central Statistical Organisation (CSO) has pegged real GDPgrowth at 7.0% and real growth of gross value added (GVA) at 6.8%. Both these estimatesare lower than what occurred a year earlier.
Moreover growth has slowed down on a quarterly basis. After posting an impressive 7.8%growth in April-June 2018 GVA growth reduced to 6.8% for July-September 2018 and theneven further to 6.3% for October-December 2018. And the CSO's muted advance estimate of6.8% GVA growth for the full year suggests that the fourth quarter may also post modestgrowth.
Despite such a milieu your Company has performed admirably. Allow me to outline thekey results.
Total turnover increased by 18.5% to ? 31899 crore. This is your Company'shighest ever top-line.
Total operating income (net sales plus other operating income) grew by 20.1% to? 30540 crore also Bajaj Auto's highest.
Operating EBITDA increased by 4.7% to ? 5387 crore.
Profit before tax (PBT) after exceptional items grew by 15.9% to ? 6703 crorewhich was also the best for Bajaj Auto.
Profit after tax (PAT) increased by 14.9% to ? 4675 crore this toobeing the highest ever.
Surplus cash and cash equivalents as on 31 March 2019 was up by 5.3% to ? 16368crore.
There are several positive aspects of your Company's performance. Let me share three.
First and this pleases me no end with a combination of well styled appealingproducts and astute pricing Bajaj Auto has begun to grow its domestic market share inmotorcycles. In the course of a single year FY2019 your Company succeeded in increasingits domestic sale of motorcycles by almost 29% and in the process grew its marketshare by 3 percentage points to 18.7%. In fact for March 2019 the market share exceeded20.0%. I hope that we are seeing the beginning of a trend that will continue to increaseyour Company's share of motorcycles in the domestic market and in doing so take BajajAuto to a place that behoves its presence.
Second I am delighted that in FY2019 your Company exported over 2 million motorcyclesthree-wheelers plus its new quadricycle the QUTE to no less than 79 countries. This is alandmark achievement and represents a growth of 25% over the previous year onethat truly lends itself to the theme of this year's annual report The World'sFavourite Indian'.
Third I continue to remain impressed with your Company's performance in thethree-wheelers space. In FY2019 Bajaj Auto's overall three-wheeler sales grew by morethan 22% to reach an all-time high. Much of this growth was driven by an impressive 43%growth in exports. Your Company accounted for almost 57% of total three-wheeler sales inIndia and two-thirds of total sales to export markets.
At my age I am a bit superstitious about praise. Even so on your behalf let mecongratulate your Managing Director and his team. While telling them "This is great.Now take it to yet another level."
Finally my thanks to our customers dealers vendors and employees who as alwayshave done their utmost for Bajaj Auto. And to you for your steadfast support.
With best regards
17 May 2019