Bajaj Auto Q1 Results: Earnings Beat Street Estimates; Net Profit Jumps 19% YoY, Margin Expands

Bajaj Auto, one of India's leading two and three-wheeler manufacturers, has kicked off the financial year on a high note, posting a 19.4% increase in net profit for the first quarter of FY25. The company reported a net profit of Rs 1,988 crore, marking a rise from Rs 1,665 crore in the corresponding quarter last year.

The company's revenue from operations experienced an uptick, increasing by 15.7% year-on-year (YoY) to Rs 11,928 crore in Q1FY25, up from Rs 10,310 crore in the corresponding quarter of the previous fiscal year. This growth was driven by strong vehicle sales and record revenue from spare parts.

On the operational front, Bajaj Auto reported a growth in earnings before interest, tax, depreciation, and amortization (EBITDA). EBITDA for Q1FY25 surged by 24% to Rs 2,415 crore, up from Rs 1,954 crore in Q1FY24. Moreover, the EBITDA margin expanded by 130 basis points year-on-year, reaching 20.2% compared to 19% in the previous year.

The volume expansion across both domestic and export markets, coupled with a favorable product mix, contributed to the double-digit revenue growth. Additionally, the average selling price (ASP) increased by 7.9% YoY, supported by a 760 basis points improvement in the 125 cc and higher category motorcycles.

Bajaj Auto sold a total of 11,02,056 units in the June 2024 quarter, reflecting a 7% growth compared to 10,27,407 units sold in the same period last year. The company's export revenue grew at a double-digit rate YoY, with the Latin America (LATAM) region achieving its highest-ever revenue. The electric vehicle (EV) portfolio, which includes electric two-wheelers (e2W) and three-wheelers (e3W), accounted for 14% of the domestic revenue, highlighting Bajaj Auto's steady focus on enhancing the penetration of its EV products. The popular Pulsar motorcycle series continued to witness double-digit volume growth, further bolstered by the launch of the Pulsar NS400z. Additionally, revenue from the Triumph brand since its launch reached Rs 1,200 crore, with 60,000 deliveries so far.

The board of directors at Bajaj Auto approved the appointment of Dr. Sangita Reddy as an Additional Director (Non-executive Independent Director) for a term of five consecutive years, starting from July 16, 2024. This appointment is subject to the approval of the company's shareholders. Dr Reddy's experience and insights are expected to contribute positively to Bajaj Auto's governance and direction.

Despite the robust financial performance, Bajaj Auto's shares were trading with minor gains of 0.30% at Rs 9,698.35 per share on the National Stock Exchange (NSE) as of 3:20 pm. Over the past year, the stock has delivered returns of over 100%, reflecting strong investor confidence and the company's solid market position.