Bajaj Auto Q3 results: Profit climbs 37% to Rs 2,042 crore, exceeds St estimates; key takeaways

Two-wheeler maker Bajaj Auto Ltd on Wednesday said its net profit grew 37 per cent year-on-year (YoY) to Rs 2,042 crore in the December quarter against Rs 1,491 crore in the same quarter last year, helped by strong domestic demand for its motorcycles and three-wheelers. Analysts were expecting the auto major to report 30 per cent jump in the bottom line.

The auto major reported 30 per cent YoY rise in standalone sales at Rs 12,114 crore in Q3FY24 compared with Rs 9,315 crore in the year-ago period. The revenue growth figure matched analyst estimates. Bajaj Auto said its Ebitda for the quarter grew 37 per cent to Rs 2,430 crore and that its Ebitda margin expanded 100 basis points YoY to 20.1 per cent against 19.1 per cent in the year-ago quarter. 

On its results, Bajaj Auto said that the revenue at Rs 12,114 crores was a new peak, thanks to acceleration on the domestic business as a sharp execution and impactful activation during the festive season cushioned the relatively subdued albeit recovering export sales amid continued challenges in overseas markets

Ebitda was also at its highest level, with the margin expansion largely driven by better realisations, dynamic cost management and operating leverage. This, it said, more than absorbed the drag from competitive investments on growing scale on electric scooters.

The domestic business delivered an a stronger quarter with volume-led revenue growth of nearly 50 per cent YoY, Bajaj Auto said adding that a broad-based double digit YoY growth was seen across all segments - bolstered by the market beating performance in motorcycles particularly in 125 cc+. Besides, Bajaj Auto said there was a sustained momentum on commercial vehicles and the steady ramp up of the electric 2W/3W portfolio

"While navigating volatile overseas markets, exports near double-digit YoY revenue growth on better mix and dollar realisation. While overall market share continues to hold steady on the back of decisive actions, the quarter saw a slight uptick in billing volumes - the step up in LA TAM, Asia and premium bike exports offset the drag arising from Africa (notably Nigeria)," it said.

Bajaj Auto said its Domestic motorcycles segment maintain its solid run as it grows 2 times of market, "turbocharged by the 125+ cc segment." At its highest quarterly volume, Pulsar continues to lead the way on competitive growth in the 125cc+ segment, six times of rest of industry. 

Bajaj Auto said commercial vehicles continue to perform well, clocking another quarter at the stepped up volume trajectory of over 40,000 units per month. The gaining popularity of the e3W and segment leadership in the early launch cities is prompting an advancement of network expansion plans, Bajaj Auto said.
At present, the e3W has availability in 23 cities, with work in progress on doubling this in the coming months, Bajaj Auto said.

"Investments on Chetak e2W yielding results as it steadily scales up; volumes over 3 times YoY with exit market share at 14% (5 per cent PY). Chetak portfolio strengthened with the new Urbane and Premium scooters, that come with cutting-edge design, advanced functionality and exciting features , to give customers a superior riding experience and make it an absolute leader in its class," it said.

On Wednesday, Bajaj Auto's scrip on BSE closed 1.7 per cent higher at Rs 7,211.4.

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