Bajaj Auto Ltd. has reported impressive financial results for the second quarter of the fiscal year 2024, showcasing significant growth in both revenue and profit. On October 16, 2024, the company announced a 9% year-on-year increase in its net profit, which reached ₹2,005 crore for the quarter ending September 30. This growth is attributed to a 22% surge in revenue, amounting to ₹13,127 crore, compared to ₹10,777 crore during the same period last year.
Main Points
Key Financial Highlights
- Net Profit: Increased by 9% YoY to ₹2,005 crore.
- Revenue: Grew by 22% YoY to ₹13,127 crore.
- EBITDA: Rose by 24% YoY to ₹2,652 crore.
- EBITDA Margin: Improved slightly to 20.02%, up from 19.8% in the previous year.
Despite these positive results, the figures fell short of analysts’ expectations. A poll conducted by various financial institutions had projected a net profit of around ₹2,227 crore and revenue of approximately ₹13,266 crore for this quarter. The discrepancy is largely due to a one-time tax impact of ₹211 crore related to changes in the long-term capital gains (LTCG) tax regime introduced in the Union Budget.
Sales Performance
Bajaj Auto’s sales performance was robust during this quarter. The company sold a total of 1,221,504 units, marking a 16% increase from the previous year’s sales of 1,053,953 units. This growth was driven by strong domestic demand and an increase in exports. Domestic sales alone surged by 22%, with 776,711 units sold compared to 637,556 units last year. Exports also saw a healthy rise of 7%, reaching 444,793 units.
The company’s flagship brand, Pulsar, continues to dominate the market and contributed significantly to overall sales. In addition to traditional two-wheelers, Bajaj Auto has made significant strides in the electric vehicle (EV) sector. The Bajaj Chetak electric scooter saw its sales triple year-on-year, with over 53,730 units sold during this quarter.
Market Position
Bajaj Auto’s market share in the electric two-wheeler segment stands at an impressive 21.47%, reflecting its commitment to electrification and sustainable mobility solutions. The company has also launched new models aimed at enhancing its portfolio and catering to diverse customer preferences.
Stock Performance
Following the announcement of these results, Bajaj Auto’s shares experienced a slight uptick of 0.85%, closing at ₹11,617.55 per share on October 16. This performance is notable given that the broader market saw a decline.
Future Outlook
Looking ahead, Bajaj Auto aims to maintain its growth trajectory through strategic investments and product diversification. The board has approved an additional investment of up to $10 million in its subsidiary Bajaj Brazil as part of its global expansion strategy.
The July-September quarter has been particularly significant as it marks Bajaj Auto’s tenth consecutive quarter of double-digit revenue growth. The company’s management attributes this success to effective business strategies that have allowed it to navigate challenges such as rising commodity prices and increased competition in both domestic and international markets.
