Bajaj Auto trades ~7% higher on stellar Q3FY23 performance

27 Jan 2023 , 02:48 PM

Bajaj Auto shares jumped as much as 7% to Rs3,995 in Friday trading after the company reported a nearly 23% year-on-year (YoY) increase in net profit for the December 2022 quarter to Rs1,491.42 crore.

The company said in a release that the EBITDA was the highest it had ever been, breaking the previous quarter’s record. According to the company, the strong growth in EBITDA and profitability was driven by prudent pricing, improved dollar realization, and a more diverse product mix.

Its revenue from operations increased by 3.3% year on year to Rs9,315.14 crore, while EBITDA increased by 29.4% yoy to Rs1,777 crore and margins increased by 386 basis points to 19.07%.

Domestic revenue growth in both two-wheelers and three-wheelers was in the double digits. According to the company, the two-wheeler’s performance was boosted in particular by solid 125 cc+ festive season sales, while three-wheeler volumes surged, resulting in a record-high market share.

The quarter witnessed the launch of motorcycles in Brazil under the well-known Dominar brand, as per the automaker.

At around 1.13 PM, Bajaj Auto was trading 6.07% higher at Rs3,947.55 per piece, against the previous close of Rs3,717.40 on NSE. The counter hit an intraday high and low of Rs3,995 and Rs3,830 respectively.

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