Bajaj Auto posts 37% y-o-y growth in Q3 net profit at Rs 2,042 crore

25 Jan 2024 , 12:30 PM

Bajaj Auto, a leading two-wheeler manufacturer, announced a 37% year-on-year increase in its standalone net profit to Rs 2,042 crore for the third quarter ended December 2023, above the poll estimate of Rs 1,961 crore. Last year, the business made Rs 1,491 crore in profits.

Revenue from operations in the quarter climbed by 30% year-on-year to Rs 12,114 crore, above the street expectations of Rs 11,875 crore. The company reported revenues of Rs 9,315 crore in the previous corresponding quarter.

The significant revenue growth was driven by an acceleration in the domestic business as a result of sharp execution and effective activation over the holiday season.

Export sales hindered growth to some extent, but the business says it is rebounding despite ongoing headwinds in international markets. The business reported its highest-ever quarterly EBITDA of Rs 2,430 crore, up 37% YoY. During the third quarter, margins increased by 100 basis points, reaching 20.1%.

The significant margin growth was driven by improved realizations, dynamic cost control, and operating leverage, which, according to the firm, more than offset the drag from competing expenditures in expanding the scale of electric scooters.

Domestic business experienced a stronger quarter, with a volume-led revenue increase of approximately 50% year-on-year. Domestic growth was broad-based across all sectors, backed by motorcycles, notably those with 125 cc or more, persistent strength in commercial vehicles, and a gradual build-up of the electric portfolio.

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