Dear Shareholder,

Who could have dreamt of the human and economic calamities that the world is going through because of a virus called Covid-19? Nothing of this global scale has ever occurred before.

As I write this letter to you, over 141 million people have been struck by the disease and more than 3 million have perished. In India, as we are battling the second wave of the virus — a wave that is more severe than the first — Covid-19 has claimed more than 14.8 million cases and some 177,150 deaths.

Everything suggests that, in epidemiological terms, things will get worse before getting better.

After the full national lockdown during 25 March to 30 April 2020 and partial lockdown that continued in varying stages up to 30 November 2020, things were gradually moving for the better. Subsequent to the first and second quarters of FY2021 — when real GDP crashed by 24.4% followed by another 7.3% — we were beginning to see some green shoots of recovery. October-December 2020 showed a small but positive GDP growth of 0.4%. We were looking forward to another quarter of positive growth in January-March 2021.

With the second wave that started in March 2021, I doubt whether we will see that growth. More worryingly, I am concerned about Q1 FY2022 and what a series of state-wide lockdowns might do to businesses and economic growth.

In such disheartening circumstances, your Company has done quite well in not only limiting its downside but also in posting relatively healthy results. Let me briefly share these.

  • Net sales for FY2021 was ₹ 27,133 crore. Despite a decline of 6.8%, it was the third highest sales in Bajaj Auto’s history.
  • Operating earnings before interest, tax, depreciation and amortisation (EBITDA) was ₹ 5,063 crore — a reduction of 3.6% versus the previous year.
  • Operating EBITDA margin was 18.3% of net sales and other operating income, versus 17.6% in the previous year — representing an increase of 70 basis points in this Covid-19 year.
  • Though operating profit declined by 4.1% to ₹ 4,797 crore, the operating profit margin was 17.3% of net sales and other operating income. This was 60 basis points higher than FY2020.
  • Profit before tax (PBT) declined by 9.7% to ₹ 5,939 crore, Bajaj Auto’s third highest ever.
  • Profit after tax (PAT) decreased by 10.7% to ₹ 4,555 crore. This was the Company’s third highest PAT.
  • Surplus cash and cash equivalent as on 31 March 2021 increased by 23.5% to ₹ 17,689 crore.

Given the circumstances, I believe that these are creditable results. Your managing director, Rajiv Bajaj, his team and every employee of your Company should be collectively congratulated for the tremendous efforts that they have made in the most difficult year that our country has witnessed.

Personally, I am delighted with the introduction of the new Chetak — a best-in-class electric scooter with an iconic design. When booking for the Chetak was first rolled out in early 2020, it had to be stopped on account of Covid-19 related supply chain disruptions.

Thereafter, your Company re-opened online bookings on 13 April 2021 but had to stop just 48 hours later, owing to an overwhelming response. I expect to see your Company delivering this iconic model in FY2022.

To each of us in Bajaj Auto, our people are our greatest assets. I am proud to say that amidst this pandemic your Company has walked the extra mile to ensure health and safety for all employees. As it is doing even now.

Let us hope that rapidly accelerated vaccinations coupled with a strict enforcement of masks and social distancing will soon bring the second wave under control.

Let us also hope that we do not react to the epidemic by declaring more lockdowns, as we did the last time. For these will destroy business, employment and the economy without necessarily controlling the spread of the disease.

I have been your Company’s Chairman since the last 49 years. Given that I am getting along, it is the time for change and to pass the mantle on to a younger person. I am happy to announce that your Board has unanimously approved Niraj Bajaj as the next Chairman of Bajaj Auto. I wish him well and am sure that he will do an excellent job.

That being so, this is my last Chairman’s Letter to you. Though I shan’t write to you through this forum any further, rest assured that you and your Company will forever remain in my heart.

Stay safe. Vaccinate yourselves. Remain protected.

God bless you and your family.

Yours sincerely,

Rahul Bajaj
Chairman
29 April 2021

Dear Shareholder,

Who could have dreamt of the human and economic calamities that the world is going through because of a virus called Covid-19? Nothing of this global scale has ever occurred before.

As I write this letter to you, over 141 million people have been struck by the disease and more than 3 million have perished. In India, as we are battling the second wave of the virus — a wave that is more severe than the first — Covid-19 has claimed more than 14.8 million cases and some 177,150 deaths.

Everything suggests that, in epidemiological terms, things will get worse before getting better.

After the full national lockdown during 25 March to 30 April 2020 and partial lockdown that continued in varying stages up to 30 November 2020, things were gradually moving for the better. Subsequent to the first and second quarters of FY2021 — when real GDP crashed by 24.4% followed by another 7.3% — we were beginning to see some green shoots of recovery. October-December 2020 showed a small but positive GDP growth of 0.4%. We were looking forward to another quarter of positive growth in
January-March 2021.

With the second wave that started in March 2021, I doubt whether we will see that growth. More worryingly, I am concerned about Q1 FY2022 and what a series of state-wide lockdowns might do to businesses and economic growth.

In such disheartening circumstances, your Company has done quite well in not only limiting its downside but also in posting relatively healthy results. Let me briefly share these.

  • Net sales for FY2021 was ₹ 27,133 crore. Despite a decline of 6.8%, it was the third highest sales in Bajaj Auto’s history.
  • Operating earnings before interest, tax, depreciation and amortisation (EBITDA) was ₹ 5,063 crore — a reduction of 3.6% versus the previous year.
  • Operating EBITDA margin was 18.3% of net sales and other operating income, versus 17.6% in the previous year — representing an increase of 70 basis points in this Covid-19 year.
  • Though operating profit declined by 4.1% to ₹ 4,797 crore, the operating profit margin was 17.3% of net sales and other operating income. This was 60 basis points higher than FY2020.
  • Profit before tax (PBT) declined by 9.7% to ₹ 5,939 crore, Bajaj Auto’s third highest ever.
  • Profit after tax (PAT) decreased by 10.7% to ₹ 4,555 crore. This was the Company’s third highest PAT.
  • Surplus cash and cash equivalent as on 31 March 2021 increased by 23.5% to ₹ 17,689 crore.

Given the circumstances, I believe that these are creditable results. Your managing director, Rajiv Bajaj, his team and every employee of your Company should be collectively congratulated for the tremendous efforts that they have made in the most difficult year that our country has witnessed.

Personally, I am delighted with the introduction of the new Chetak — a best-in-class electric scooter with an iconic design. When booking for the Chetak was first rolled out in early 2020, it had to be stopped on account of Covid-19 related supply chain disruptions.

Thereafter, your Company re-opened online bookings on 13 April 2021 but had to stop just 48 hours later, owing to an overwhelming response. I expect to see your Company delivering this iconic model in FY2022.

To each of us in Bajaj Auto, our people are our greatest assets. I am proud to say that amidst this pandemic your Company has walked the extra mile to ensure health and safety for all employees. As it is doing even now.

Let us hope that rapidly accelerated vaccinations coupled with a strict enforcement of masks and social distancing will soon bring the second wave under control.

Let us also hope that we do not react to the epidemic by declaring more lockdowns, as we did the last time. For these will destroy business, employment and the economy without necessarily controlling the spread of the disease.

I have been your Company’s Chairman since the last 49 years. Given that I am getting along, it is the time for change and to pass the mantle on to a younger person. I am happy to announce that your Board has unanimously approved Niraj Bajaj as the next Chairman of Bajaj Auto. I wish him well and am sure that he will do an excellent job.

That being so, this is my last Chairman’s Letter to you. Though I shan’t write to you through this forum any further, rest assured that you and your Company will forever remain in my heart.

Stay safe. Vaccinate yourselves. Remain protected.

God bless you and your family.

Yours sincerely,

Rahul Bajaj
Chairman
29 April 2021

Dear Shareholder,

Who could have dreamt of the human and economic calamities that the world is going through because of a virus called Covid-19? Nothing of this global scale has ever occurred before.

As I write this letter to you, over 141 million people have been struck by the disease and more than 3 million have perished. In India, as we are battling the second wave of the virus — a wave that is more severe than the first — Covid-19 has claimed more than 14.8 million cases and some 177,150 deaths.

Everything suggests that, in epidemiological terms, things will get worse before getting better.

After the full national lockdown during 25 March to 30 April 2020 and partial lockdown that continued in varying stages up to 30 November 2020, things were gradually moving for the better. Subsequent to the first and second quarters of FY2021 — when real GDP crashed by 24.4% followed by another 7.3% — we were beginning to see some green shoots of recovery. October-December 2020 showed a small but positive GDP growth of 0.4%. We were looking forward to another quarter of positive growth in
January-March 2021.

With the second wave that started in March 2021, I doubt whether we will see that growth. More worryingly, I am concerned about Q1 FY2022 and what a series of state-wide lockdowns might do to businesses and economic growth.

In such disheartening circumstances, your Company has done quite well in not only limiting its downside but also in posting relatively healthy results. Let me briefly share these.

  • Net sales for FY2021 was ₹ 27,133 crore. Despite a decline of 6.8%, it was the third highest sales in Bajaj Auto’s history.
  • Operating earnings before interest, tax, depreciation and amortisation (EBITDA) was ₹ 5,063 crore — a reduction of 3.6% versus the previous year.
  • Operating EBITDA margin was 18.3% of net sales and other operating income, versus 17.6% in the previous year — representing an increase of 70 basis points in this Covid-19 year.
  • Though operating profit declined by 4.1% to ₹ 4,797 crore, the operating profit margin was 17.3% of net sales and other operating income. This was 60 basis points higher than FY2020.
  • Profit before tax (PBT) declined by 9.7% to ₹ 5,939 crore, Bajaj Auto’s third highest ever.
  • Profit after tax (PAT) decreased by 10.7% to ₹ 4,555 crore. This was the Company’s third highest PAT.
  • Surplus cash and cash equivalent as on 31 March 2021 increased by 23.5% to ₹ 17,689 crore.

Given the circumstances, I believe that these are creditable results. Your managing director, Rajiv Bajaj, his team and every employee of your Company should be collectively congratulated for the tremendous efforts that they have made in the most difficult year that our country has witnessed.

Personally, I am delighted with the introduction of the new Chetak — a best-in-class electric scooter with an iconic design. When booking for the Chetak was first rolled out in early 2020, it had to be stopped on account of Covid-19 related supply chain disruptions.

Thereafter, your Company re-opened online bookings on 13 April 2021 but had to stop just 48 hours later, owing to an overwhelming response. I expect to see your Company delivering this iconic model in FY2022.

To each of us in Bajaj Auto, our people are our greatest assets. I am proud to say that amidst this pandemic your Company has walked the extra mile to ensure health and safety for all employees. As it is doing even now.

Let us hope that rapidly accelerated vaccinations coupled with a strict enforcement of masks and social distancing will soon bring the second wave under control.

Let us also hope that we do not react to the epidemic by declaring more lockdowns, as we did the last time. For these will destroy business, employment and the economy without necessarily controlling the spread of the disease.

I have been your Company’s Chairman since the last 49 years. Given that I am getting along, it is the time for change and to pass the mantle on to a younger person. I am happy to announce that your Board has unanimously approved Niraj Bajaj as the next Chairman of Bajaj Auto. I wish him well and am sure that he will do an excellent job.

That being so, this is my last Chairman’s Letter to you. Though I shan’t write to you through this forum any further, rest assured that you and your Company will forever remain in my heart.

Stay safe. Vaccinate yourselves. Remain protected.

God bless you and your family.

Yours sincerely,

Rahul Bajaj
Chairman
29 April 2021