Automation Giant Bajaj Auto Reports A Rise Of 37% In Q3FY24 Net Profit, Exports Surge

Bajaj Auto, one of India's leading two and three-wheeler manufacturers, reported a robust 37% rise in standalone net profit at Rs 2,042 crore for the October-December quarter of fiscal 2023-24 (Q3FY24). The company's financial results exceeded expectations set by leading brokerage firms, driven by high operating profit and strong volume growth.

Bajaj Auto crossed a significant milestone as its net profit soared to Rs 2,042 crore, marking a remarkable 37% YoY increase compared to Rs 1,491 crore in the previous year. The company's revenue from operations recorded a substantial growth of 30.1%, reaching Rs 12,114 crore compared to Rs 9,315 crore in the corresponding period last year. This revenue surge was largely propelled by the acceleration of the domestic business, supported by effective execution and impactful activation during the festive season.

Bajaj Auto's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the December quarter witnessed a remarkable surge of 37%, reaching Rs 2,430 crore compared to Rs 1,776 crore in the same period last year. The company achieved its highest-ever quarterly EBITDA, with the EBITDA margin standing at 20.1%, a significant increase from 19.1% in the previous fiscal year. This boost in margin was attributed to better realizations, dynamic cost management, and operating leverage, effectively offsetting the impact of competitive investments in the growing scale of electric scooters.

Bajaj Auto's domestic business exhibited a robust quarter with a volume-led revenue growth of nearly 50% annually. The company experienced double-digit YoY growth across all segments, with outstanding performance in motorcycles, particularly in the 125cc+ category. The sustained momentum in commercial vehicles and the steady ramp-up of the electric two-wheelers and three-wheelers portfolio further contributed to this exceptional growth.

Bajaj Auto's exports demonstrated near double-digit YoY revenue growth, driven by a better product mix and favourable dollar realization. Despite challenges in overseas markets, the company maintained its overall market share, with a slight uptick in billing volumes. The increase in exports to Latin America, Asia, and premium bike markets compensated for the decline in Africa, notably Nigeria.

Domestic motorcycles maintained a solid run, growing twice as fast as the market, fueled by the 125cc+ segment. The iconic Pulsar achieved its highest quarterly volume of 400,000 units, leading the competitive growth in the 125cc+ segment, outperforming the rest of the industry by a remarkable 6X. Commercial vehicles also showcased strong performance, maintaining a stepped-up volume trajectory of 40,000 units per month.

Bajaj Auto's share price reflected the positive momentum, rallying over 39.3% in the past three months and marking a 92.7% surge over the past year. On Wednesday, the company's shares settled 1.70% higher at Rs 7,211.40 per share on the BSE, showcasing investor confidence ahead of the announcement of the Q3FY24 results.