{"id":3595,"date":"2022-06-01T12:34:55","date_gmt":"2022-06-01T12:34:55","guid":{"rendered":"https:\/\/investors.bajajauto.com\/ar22\/?page_id=3595"},"modified":"2022-06-29T10:32:24","modified_gmt":"2022-06-29T10:32:24","slug":"chairmans-letter-22","status":"publish","type":"page","link":"https:\/\/investors.bajajauto.com\/ar22\/chairmans-letter-22\/","title":{"rendered":"Chairman&#8217;s Letter 22"},"content":{"rendered":"<div class=\"nolwrap\">\n<div class=\"row\"  id=\"row-75646219\">\n\n\n\t<div id=\"col-1921948564\" class=\"col hide-for-medium medium-3 small-12 large-3\"  >\n\t\t\t\t<div class=\"col-inner\"  >\n\t\t\t\n\t\t\t\n\n\t<div class=\"ux-menu stack stack-col justify-start ux-menu--divider-solid\">\n\t\t\n\n\t<div class=\"ux-menu-link flex menu-item\">\n\t\t<a class=\"ux-menu-link__link flex\" href=\"https:\/\/investors.bajajauto.com\/ar22\/board-of-directors-22\/\" >\n\t\t\t\t\t\t<span class=\"ux-menu-link__text\">\n\t\t\t\tBoard of Directors\t\t\t<\/span>\n\t\t<\/a>\n\t<\/div>\n\t\n\n\t<div class=\"ux-menu-link flex menu-item\">\n\t\t<a class=\"ux-menu-link__link flex\" href=\"https:\/\/investors.bajajauto.com\/ar22\/management-team-2\/\" >\n\t\t\t\t\t\t<span class=\"ux-menu-link__text\">\n\t\t\t\tManagement Team\t\t\t<\/span>\n\t\t<\/a>\n\t<\/div>\n\t\n\n\t<div class=\"ux-menu-link flex menu-item\">\n\t\t<a class=\"ux-menu-link__link flex\" href=\"https:\/\/investors.bajajauto.com\/ar22\/chairmans-letter-22\/\" >\n\t\t\t\t\t\t<span class=\"ux-menu-link__text\">\n\t\t\t\tChairman&#039;s Letter\t\t\t<\/span>\n\t\t<\/a>\n\t<\/div>\n\t\n\n\t<div class=\"ux-menu-link flex menu-item\">\n\t\t<a class=\"ux-menu-link__link flex\" href=\"https:\/\/investors.bajajauto.com\/ar22\/management-discussion-analysis-22\/\" >\n\t\t\t\t\t\t<span class=\"ux-menu-link__text\">\n\t\t\t\tManagement Discussion &amp; Analysis\t\t\t<\/span>\n\t\t<\/a>\n\t<\/div>\n\t\n\n\t<div class=\"ux-menu-link flex menu-item\">\n\t\t<a class=\"ux-menu-link__link flex\" href=\"https:\/\/investors.bajajauto.com\/ar22\/corporate-governance-22\/\" >\n\t\t\t\t\t\t<span class=\"ux-menu-link__text\">\n\t\t\t\tCorporate Govemance\t\t\t<\/span>\n\t\t<\/a>\n\t<\/div>\n\t\n\n\t<div class=\"ux-menu-link flex menu-item\">\n\t\t<a class=\"ux-menu-link__link flex\" href=\"https:\/\/investors.bajajauto.com\/ar22\/general-shareholder-information-22\/\" >\n\t\t\t\t\t\t<span class=\"ux-menu-link__text\">\n\t\t\t\tGeneral Shareholder Information\t\t\t<\/span>\n\t\t<\/a>\n\t<\/div>\n\t\n\n\t<div class=\"ux-menu-link flex menu-item\">\n\t\t<a class=\"ux-menu-link__link flex\" href=\"https:\/\/investors.bajajauto.com\/ar22\/directors-report-22\/\" >\n\t\t\t\t\t\t<span class=\"ux-menu-link__text\">\n\t\t\t\tDirector&#039;s Report\t\t\t<\/span>\n\t\t<\/a>\n\t<\/div>\n\t\n\n\n\t<\/div>\n\t\n\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\n\n\t<div id=\"col-1988542702\" class=\"col medium-9 small-12 large-9\"  >\n\t\t\t\t<div class=\"col-inner\"  >\n\t\t\t\n\t\t\t\n\n\t<div class=\"img has-hover x md-x lg-x y md-y lg-y\" id=\"image_43252761\">\n\t\t\t\t\t\t\t\t<div class=\"img-inner dark\" >\n\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1020\" height=\"569\" src=\"https:\/\/investors.bajajauto.com\/ar22\/wp-content\/uploads\/2022\/06\/Niraj-Bajaj_Chairman-1400x781.jpg\" class=\"attachment-large size-large\" alt=\"\" srcset=\"https:\/\/investors.bajajauto.com\/ar22\/wp-content\/uploads\/2022\/06\/Niraj-Bajaj_Chairman-1400x781.jpg 1400w, https:\/\/investors.bajajauto.com\/ar22\/wp-content\/uploads\/2022\/06\/Niraj-Bajaj_Chairman-717x400.jpg 717w, https:\/\/investors.bajajauto.com\/ar22\/wp-content\/uploads\/2022\/06\/Niraj-Bajaj_Chairman-768x428.jpg 768w, https:\/\/investors.bajajauto.com\/ar22\/wp-content\/uploads\/2022\/06\/Niraj-Bajaj_Chairman-1536x857.jpg 1536w, https:\/\/investors.bajajauto.com\/ar22\/wp-content\/uploads\/2022\/06\/Niraj-Bajaj_Chairman.jpg 1793w\" sizes=\"auto, (max-width: 1020px) 100vw, 1020px\" \/>\t\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\n<style>\n#image_43252761 {\n  width: 100%;\n}\n<\/style>\n\t<\/div>\n\t\n\n<!DOCTYPE html>\n<html xmlns=\"http:\/\/www.w3.org\/1999\/xhtml\">\n\t<head>\n\t\t<meta charset=\"utf-8\" \/>\n\t\t<title>Chairman\u2019s_Letter<\/title>\n\t\t<style>\n\tbody, div, dl, dt, dd, h1, h2, h3, h4, h5, h6, p, pre, code, blockquote {\n\tmargin:0;\n\tpadding:0;\n\tborder-width:0;\n\tpadding-left: 0px;\n\tpadding-right: 0px;\n}\nbody {\n\t-epub-hyphens:auto;\n}\ndiv.Basic-Text-Frame {\n\tborder-style:solid;\n\tpadding-left: 0px;\n\tpadding-right: 0px;\n}\np.Custom-V_03_Chapter_07_Chapter_Head {\n\t-epub-hyphens:none;\n\tcolor:#005dac;\n\tfont-family:\"Poppins Black\", sans-serif;\n\tfont-size:30px;\n\tfont-style:normal;\n\tfont-variant:normal;\n\tfont-weight:900;\n\tline-height:1.2;\n\tmargin-bottom:17px;\n\tmargin-left:0;\n\tmargin-right:0;\n\tmargin-top:0;\n\torphans:1;\n\tpage-break-after:auto;\n\tpage-break-before:auto;\n\ttext-align:left;\n\ttext-decoration:none;\n\ttext-indent:0;\n\ttext-transform:uppercase;\n\twidows:1;\n}\np.Custom-V_03_Chapter_12_Body-Text, li.Custom-V_03_Chapter_12_Body-Text {\n\t-epub-hyphens:none;\n\tcolor:#000000;\n\tfont-family:\"Poppins Light\", sans-serif;\n\tfont-size:16px;\n\tfont-style:normal;\n\tfont-variant:normal;\n\tfont-weight:300;\n\tline-height:1.375;\n\tmargin-bottom:15px;\n\tmargin-left:0;\n\tmargin-right:0;\n\tmargin-top:0;\n\torphans:1;\n\tpage-break-after:auto;\n\tpage-break-before:auto;\n\ttext-align:left;\n\ttext-decoration:none;\n\ttext-indent:0;\n\ttext-transform:none;\n\twidows:1;\n}\nspan.Bold {\n\tfont-family:Poppins, sans-serif;\n\tfont-style:normal;\n\tfont-weight:bold;\n}\nspan.ITF-Rupee {\n\tfont-family:\"ITF Rupee\", sans-serif;\n\tfont-style:normal;\n\tfont-weight:normal;\n\ttext-decoration:none;\n}\nli.ParaOverride-1 {\n\tlist-style-position:outside;\n\tmargin-left:14px;\n\ttext-indent:0px;\n}\np.ParaOverride-2 {\n\tmargin-bottom:0px;\n}\nimg._idGenObjectAttribute-1 {\n\theight:77px;\n\twidth:100%px;\n\tpadding-left:5px;\n\tpadding-right:5px;\n}\n\n\t<\/style>\n\t<\/head>\n\t<body id=\"Chairman-s_Letter\" lang=\"en-US\">\n\t\t<div id=\"_idContainer001\" class=\"Basic-Text-Frame\">\n\t\t\t<p class=\"Custom-V_03_Chapter_07_Chapter_Head\">Chairman\u2019s Letter<\/p>\n\t\t\t<p class=\"Custom-V_03_Chapter_12_Body-Text\">Dear Shareholder,<\/p>\n\t\t\t<p class=\"Custom-V_03_Chapter_12_Body-Text\">As the youngest of five cousins \u2014 we always called each other \u2018brothers\u2019 \u2014 I was the perennial \u2018student\u2019 of Rahul-bhaiya. In the process, he taught me everything that I know today. The skill and focus with which he dealt with numbers; his ability to see things from 40,000 feet and instantaneously descend to an ant\u2019s-eye view of things; his unflinching commitment to ethics and integrity; his innate understanding of various businesses; his courage and fearlessness and the conviction to call a spade a spade; his innate understanding of when to be a tough negotiator and when to cut slack, all done with a smile, humour and logic; his quest for details; and his capacity to care, show concern, and have huge amounts of fun.<\/p>\n\t\t\t<p class=\"Custom-V_03_Chapter_12_Body-Text\">Even today, I can imagine him calling me at 11.30 at night to check whether I had finished doing something that I was supposed to do. Or to admonish me for wasting precious paper in expressing all these things about him.<\/p>\n\t\t\t<p class=\"Custom-V_03_Chapter_12_Body-Text\">I will miss him forever.<\/p>\n\t\t\t<p class=\"Custom-V_03_Chapter_12_Body-Text\">Had Rahul-bhaiya been around, he would have been happy with the results of your Company. I can imagine him saying, \u201cWhat good fortune to have such results in the very first year of your Chairmanship\u201d. And my replying, \u201cIt is only with your blessings, Sir\u201d. The numbers are indeed excellent, and demonstrate the ability of your Company\u2019s management to swiftly overcome the enormous crisis brought about by Covid and return to its winning ways. Here are the key results:<\/p>\n\t\t\t<ul>\n\t\t\t\t<li class=\"Custom-V_03_Chapter_12_Body-Text ParaOverride-1\">Net sales for FY2022 was <span class=\"ITF-Rupee\" lang=\"en-GB\"> <\/span>32,136 crore versus <span class=\"ITF-Rupee\" lang=\"en-GB\"> <\/span>27,133 crore for FY2021. With a growth of 18.4%, this is your Company\u2019s highest ever annual net sales.<\/li>\n\t\t\t\t<li class=\"Custom-V_03_Chapter_12_Body-Text ParaOverride-1\">Operating earnings before interest, tax, depreciation and amortisation (EBITDA) was <span class=\"ITF-Rupee\" lang=\"en-GB\"> <\/span>5,389 crore for FY2022 \u2014 a growth of 6.4% over the previous year, and also the highest ever.<\/li>\n\t\t\t\t<li class=\"Custom-V_03_Chapter_12_Body-Text ParaOverride-1\">Operating EBITDA margin was 16.3% of net sales and other operating income, versus 18.3% in the previous year. That was on account of serious increases in input costs, and your Company\u2019s inability to further push its high value-high margin sports and super-sports bikes no thanks to a crippling global shortage of semiconductors.<\/li>\n\t\t\t\t<li class=\"Custom-V_03_Chapter_12_Body-Text ParaOverride-1\">Operating profit grew by 6.5% to <span class=\"ITF-Rupee\" lang=\"en-GB\"> <\/span>5,111 crore \u2013 which is also the highest ever. The operating profit margin was 15.4% of net sales and other operating income.<\/li>\n\t\t\t\t<li class=\"Custom-V_03_Chapter_12_Body-Text ParaOverride-1\">Profit before tax and exceptional item increased by 4.2% to <span class=\"ITF-Rupee\" lang=\"en-GB\"> <\/span>6,190 crore \u2014 which is the third highest in your Company\u2019s history. <\/li>\n\t\t\t\t<li class=\"Custom-V_03_Chapter_12_Body-Text ParaOverride-1\">Profit before tax (PBT) grew by 9.5% to <span class=\"ITF-Rupee\" lang=\"en-GB\"> <\/span>6,505 crore. This, too, was Bajaj Auto\u2019s third highest ever.<\/li>\n\t\t\t\t<li class=\"Custom-V_03_Chapter_12_Body-Text ParaOverride-1\">Profit after tax (PAT) recorded a growth of 10.2% to <span class=\"ITF-Rupee\" lang=\"en-GB\"> <\/span>5,019 crore. This was your Company\u2019s second highest PAT.<\/li>\n\t\t\t\t<li class=\"Custom-V_03_Chapter_12_Body-Text ParaOverride-1\">Surplus cash and cash equivalent as on 31 March 2022 increased by 7.9% to <span class=\"ITF-Rupee\" lang=\"en-GB\"> <\/span>19,090 crore after  a dividend pay-out of <span class=\"ITF-Rupee\" lang=\"en-GB\"> <\/span>4,051 crore in FY2022.<\/li>\n\t\t\t<\/ul>\n\t\t\t<p class=\"Custom-V_03_Chapter_12_Body-Text\">One more kudo is in order. That has to do with your Company\u2019s outstanding export performance. This is not new, but FY2022 was special. First, we crossed the export milestone of 2.5 million vehicles. Second, motorcycle exports touched new highs \u2013 at almost 2.2 million units, showing a growth of 22% over FY2021. Third, in 10 of the 12 months, your Company exported over 200,000 units. And fourth, exports accounted for 52.7% of net sales \u2014 something that we have never witnessed before. Bajaj Auto is truly <span class=\"Bold\">The World\u2019s Favourite Indian.<\/span><\/p>\n\t\t\t<p class=\"Custom-V_03_Chapter_12_Body-Text\">I believe that your Company\u2019s Managing Director, Shri Rajiv Bajaj, his entire team and each and every employee deserve congratulations for such results.<\/p>\n\t\t\t<p class=\"Custom-V_03_Chapter_12_Body-Text\">Having rightly applauded the management, I should also share with you a short term concern. There is no doubt in my mind \u2014 nor should it be in yours \u2014 that Bajaj Auto has a complete suite of profitable two-and three-wheelers that can significantly increase the domestic and international market shares and earn higher sales, revenues and profits. However, in all my years as a fiduciary of your Company,  I have never seen it face such a global supply constraint that it has in terms of the sheer scarcity of semiconductors. No modern automobile can exist without a slew of semiconductor chips. Motorcycles and top-of-the-line electric vehicles like the Chetak are no exceptions. It is difficult to predict when this supply scarcity will end. But till then, this will constrain your Company\u2019s production volumes, as it will for all other automobile manufacturers.<\/p>\n\t\t\t<p class=\"Custom-V_03_Chapter_12_Body-Text\">That said, I have no doubt whatsoever about the medium-and long-term view of your Company. It is  a great enterprise in excellent hands \u2014 and forever capable of delighting customers, employees and shareholders alike. Which is why it is Hamara Bajaj!<\/p>\n\t\t\t<p class=\"Custom-V_03_Chapter_12_Body-Text ParaOverride-2\">With my best wishes,<\/p>\n\t\t\t<p class=\"Custom-V_03_Chapter_12_Body-Text\">Yours sincerely,<\/p>\n\t\t\t<p class=\"Custom-V_03_Chapter_12_Body-Text ParaOverride-2\">Niraj Bajaj<\/p>\n\t\t\t<p class=\"Custom-V_03_Chapter_12_Body-Text ParaOverride-2\">Chairman <\/p>\n\t\t\t<p class=\"Custom-V_03_Chapter_12_Body-Text\">27 April 2022<\/p>\n\t\t<\/div>\n\t<\/body>\n<\/html>\n\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\n\n<\/div>\n\n<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-3595","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/investors.bajajauto.com\/ar22\/wp-json\/wp\/v2\/pages\/3595","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/investors.bajajauto.com\/ar22\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/investors.bajajauto.com\/ar22\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/investors.bajajauto.com\/ar22\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/investors.bajajauto.com\/ar22\/wp-json\/wp\/v2\/comments?post=3595"}],"version-history":[{"count":10,"href":"https:\/\/investors.bajajauto.com\/ar22\/wp-json\/wp\/v2\/pages\/3595\/revisions"}],"predecessor-version":[{"id":5272,"href":"https:\/\/investors.bajajauto.com\/ar22\/wp-json\/wp\/v2\/pages\/3595\/revisions\/5272"}],"wp:attachment":[{"href":"https:\/\/investors.bajajauto.com\/ar22\/wp-json\/wp\/v2\/media?parent=3595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}