Bajaj Auto Q1 Results: Profit increases 11% YoY to Rs1,173 crore, above expectations

27 Jul 2022 , 08:36 AM

On Tuesday, Bajaj Auto announced that its standalone net profit for the June quarter increased by 11% year over year (YoY), to Rs1,173 crore, from Rs1,061 crore the previous quarter.

For the June quarter, operating revenue increased 8% YoY to Rs8,005 crore from Rs7,386 crore in the comparable quarter the previous year. Ebitda increased by 15% YoY for the quarter to Rs1,328 crore from Rs1,153 crore in the corresponding period last year.

EBITDA margin increased by 100 basis points to 16.6% in the June 2022 quarter from 15.6% in the corresponding quarter last year, the two-wheeler manufacturer reported in a press release.

Despite supply limitations, cost pressures, and a difficult macroeconomic environment, Ebitda increased. According to Bajaj Auto, prudent pricing hikes, stronger currency realization, and a favorable mix countered the growth in material costs and allowed margin gain.

The lack of semiconductor supply, according to the company, had an impact on sales during the quarter, though things got better at the end when new supply sources were created.

In all, the automaker’s volumes for the quarter decreased 7% to 9,33,646 units from 10,06,014 units in the corresponding quarter last year. Exports for the quarter were down 10% YoY while total domestic volumes, including two-wheelers and commercial vehicles, were down 1% YoY.

According to the company, ASEAN and LATAM markets accounted for the majority of its shipments during the quarter, and overall market share continued to grow despite difficult macroeconomic conditions in some markets.

According to the firm, Bajaj Auto sold more sports motorcycles than ever before in LATAM regions, with the Dominar and Pulsar taking the lead in sales.

The company reported that despite difficult macroeconomic conditions in several areas, ASEAN and LATAM markets led its exports during the quarter, with total market share continuing to grow.

According to the firm, Dominar and Pulsar drove Bajaj Auto to its highest-ever sports motorbike sales in LATAM.