Bajaj Auto Q2 Results: Net profit jumps 20% to Rs 1,836 crore, revenue up by 6%

Bajaj Auto on Wednesday reported that its standalone net profit for the quarter ended September was up by 20 per cent and has touched Rs 1,836 crore. It was Rs 1,530 crore in the same quarter last year.

Its revenue from operations rose 6 per cent year-on-year to Rs 10,777 crore in the reporting period as against Rs 10,203 crore in the corresponding period of previous year.

In its statement, the company said its revenue growth was underpinned by double-digit volume growth, with the sustained buoyancy on the domestic front cushioning the weak, albeit improving export performance.

The earnings before interest, taxes, depreciation and amortization (EBITDA) was recorded at Rs 2,133 crore, with the operating margin expanding to 19.7 per cent.

In Q1 FY24, Bajaj Auto's standalone net profit jumped 42 per cent to Rs 1,665 crore over revenue growth to the tune of 28.8 per cent to Rs 10,310 crore. The auto maker's EBITDA surged 51 per cent to Rs 1,955 crore and margin improved by 280 basis points to 19 per cent. 

Margins were at 19.8 per cent, up +260 bps YoY, driven by the better realisation and a richer product mix, which more than covered the drag arising from investments on growing electric scooters, the company said.

The company noted that domestic business registered a new peak during the second quarter, on the back of six successive quarters of double-digit YoY growth.

This was supported by a broad-based performance, most notably the sustained competitive growth on 125 cc+ motorcycles and the further acceleration of three-wheeler sales that delivered its highest ever quarter.

Domestic two-wheeler sales dropped 19 per cent to 5.05 lakh units, and domestic commercial vehicle sales jumped 81% to 1.32 lakh units. Overall exports during the quarter declined 9 per cent year-on-year to 4.16 lakh units.

Shares of Bajaj Auto closed at Rs 5,143.80, up by 0.06 per cent.

Estimates

Axis Securities had said that Bajaj Auto's revenue is expected to increase by 6 per cent YoY, led by higher ASP (17 per cent YoY increase) due to higher overall share of 3W in the product mix, higher sales of premium MCs, and price hikes taken during the year partially offset by lower exports.

Kotak Securities had predicted that the revenue is expected to surge by 7 per cent YoY led by an 18 per cent YoY increase in ASPs due to a higher mix of the 3W segment, a lower mix of the domestic economy motorcycle segment, price increases and favourable FX and 8 per cent YoY decline in volumes.

Also read: YES Bank, Paytm, Nykaa, PNB, SAIL among 24 stocks down up to 96% from all-time highs; should you buy?

Also read: Sensex dives 551 points, Nifty settles below 19,700; PSU stocks bleed, IIFL Sec jumps 15%