Bajaj Auto Q1 results: Profit jumps 42% to Rs 1,665 crore, sales up 28%

Bajaj Auto Ltd on Tuesday reported a profit 42 per cent year-on-year (YoY) rise in standalone net profit at Rs 1,665 crore for the June quarter compared with Rs 1,173 crore in the same quarter last year. Revenue for the quarter jumped 29 per cent YoY to Rs 10,310 crore, the two-wheeler maker said in a BSE filing.

Bajaj Auto said it recorded the highest quarterly Ebitda of Rs 1,954 crore, up 51 per cent YoY. Margin for the quarter came in at 19 per cent, up 280 basis points YoY, driven by dynamic price verus cost management, better foreign exchange realisation and operating leverage. The slight dip sequentially was from the planned typical seasonal skew for commuter motorcycles, it said.

Bajaj Auto said all businesses contributed to the delivery - robust double digit motorcycle growth, consistent industry leading 3W performance and steady scale up on Chetak EV. Amidst the continued currency/macro challenges in overseas markets, export volumes improved 12 per cent sequentially, Bajaj Auto said.

While retail volumes outstripped export billed volumes, decisive interventions taken particularly on currency availability enabled the uptick in shipments to Africa and Latin America, Bajaj Auto said.

"Motorcycles deliver strong volume led growth with share gain; the Pulsar brand scales a new peak on volumes and revenue
o Quarterly performance led by sharp execution in the seasonal marriage markets and consistent focus on the 125cc+," Bajaj Auto said.

The company said it launched the electric 3W across both cargo & passenger segments in select markets, which received encouraging initial response.

"On ICE 3Ws, the compelling proposition and superior delivery of the Bajaj 'RE' and 'Maxima' products continued to drive the faster than industry growth and market share accretion to 80 per cent for the first time. A steady expansion of Chetak EV is well underway - volumes up over 2 times QoQ, 3 times YoY with the network now extended to 90 cities," Bajaj Auto said.

Bajaj Auto said its emphasis remains on enhancing capabilities in the supply chain, investing behind R&D for product development and growing retail presence that will allow for a sustainable business model and competitive play.

Bajaj Auto said its focus on cash generation remains as it added healthy Rs 2,000 crore of free cash flow during the quarter.

Bajaj Auto Q1 results: Analyst take

Abhishek Gaoshinde, Deputy Vice President Research at Sharekhan said despite a weak export mix, Bajaj Auto has reported healthy operating performance in the June quarter.

"With a 19 per cent Ebitda margin, adjusted profit increased 16.2 per cent QoQ to Rs 1,665 rcore against our estimate of Rs 1,670 crore. Considering its consistent focus on profitability, its brand focus plays in the premium segment, possible entry into the electric 3-wheeler segment, a successful launch of Triumph 400, and expectation of gradual recovery in exports, currently we have a buy rating on the stock with a target price of Rs 5,600," he said.

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