Two- and three-wheeler maker Bajaj Auto on Wednesday reported 23% rise in standalone net profit at Rs 1,491 crore for the quarter ended December 31, 2022 as strong domestic demand and an increase in prices of its motorcycles and scooters made up for weak exports.. It reported net profit of Rs 1,214 crore in the year-ago period.
The company's revenue from operations rose 3% to Rs 9,315 crore as against Rs 9,021 crore in Q3FY22.
The company said its "robust double-digit revenue growth in the domestic business has offset the drop in exports arising from the challenging market context".
"At Rs 1,777 crore, EBITDA was the highest ever, surpassing the record set in the previous quarter. The strong growth of29% YoY, underpinned by margin expansion of +390 bps YoY to 19.1% was led by judicious pricing, better dollar realisation and richer product mix. The domestic business saw sustained double digit revenue growth across both two wheelers (2W) and three wheelers (3W). The 2W performance was buoyed particularly by solid 125 cc+ festive season sales while 3W volumes surged, leading to its record high market share," the company said in a stock exchange filing.
"Having completed the share buyback in the quarter with a total payout of Rs 3,100 crore (including tax), the balance sheet continues to be healthy with surplus cash of Rs 14,894 crore on December 31, 2022, providing the capacity for growth investments," added Bajaj Auto.
On Wednesday, Bajaj Auto's stock closed trading 1.45% higher at Rs 3,740.
Exports, which made up over 40% of total volumes, dropped 33% as macroeconomic and regulatory pressures in Africa weighed.
The company's two-wheeler exports to Africa, which includes Nigeria, Uganda and Democratic Republic of Congo, contributed to more than half of its motorcycle exports in the last fiscal year, according to its annual report.
Bajaj Auto's total expenses dropped 1% in the third quarter.
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