Bajaj Auto Q3 Results: Net profit rises 37% to ₹2,042 crore, revenue up 30% YoY; 5 key highlights

Bajaj Auto Q3 Results: Bajaj Auto announced its October-December quarter results for fiscal 2023-24 (Q3FY24), reporting a rise of 37 per cent in standalone net profit at ₹2,042 crore, beating estimates by leading brokerage firms. The company's robust earnings in the December quarter was on the back of high operating profit and strong volume growth.

The two and three-wheeler major's net profit was expected to rise 33 per cent year-on-year (YoY) to ₹1,987 crore, according to estimates by D-Street analysts. Brokerages estimated that the revenue would be driven by volume growth, price hikes, and a better product mix in favour of premium vehicles.

Also Read: Bajaj Auto Q3 Results Preview: Net profit, revenue may rise over 30% YoY led by volume growth, rich product mix

Here are 5 key highlights of Bajaj Auto Q3 scorecard:

1.P&L Account: Profit, Revenue:

The auto major's net profit surpassed the ₹2,000 crore milestone for the first time in the quarter-under-review. At ₹2,042 crore, Bajaj Auto's net profit rose 37 per cent YoY compared to ₹1,491 crore in the year-ago period. The company's revenue from operations jumped 30.1 per cent to ₹12,114 crore, compared to ₹9,315 crore in the corresponding period last year.

The growth in revenue was led by the acceleration of the domestic business, which on the back of sharp execution and impactful activation during the festive season, cushioned the relatively subdued albeit recovering export sales amidst continued challenges in overseas markets.

2.Operating performance

On the operating front, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) in the December quarter surged 37 per cent to ₹2,430 crore, compared to ₹1,776 crore in the year-ago period. Bajaj Auto has reported its highest-ever quarterly EBITDA in the quarter-under-review. EBITDA margin stood at 20.1 per cent in the reporting quarter as compared to 19.1 per cent in the corresponding period in the previous fiscal.

Margin stepped up further to 20.1 per cent, up +100 bps year-on-year, driven by better realisations, dynamic cost management and operating leverage which more than absorbed the drag from competitive investments on the growing scale on electric scooters.

3.Domestic business

Bajaj Auto's domestic business delivered stronger quarter with volume-led revenue growth of nearly 50 per cent annually. The broad-based double-digit year-on-year growth across all segments - bolstered by the market-beating performance in motorcycles particularly in 125 cc+, sustained momentum on commercial vehicles, and the steady ramp-up of the electric two-wheelers and three-wheelers portfolio.

4.Exports 

The auto major's exports recorded near double-digit year-on-year 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),'' said Bajaj Auto in its regulatory filing to the stock exchanges.

5.Domestic motorcycles

Domestic motorcycles maintain their solid run as they grow 2X of the market, turbocharged by the 125+ cc segment. At its highest quarterly volume of 400,000 units, Pulsar continued to lead the way in competitive growth in the 125cc+ segment (6X of the rest of the industry). Commercial vehicles also continued to perform well, clocking another quarter at the stepped-up volume trajectory of 40,000 units per month.

Also Read: Bajaj Auto December sales grow 16% YoY to 3.26 lakh units; two-wheeler sales up 15%

Bajaj Auto share price has rallied over 39.3 per cent in the past three months, while the stock is up 92.7 per cent in one year. On Wednesday, shares settled 1.70 per cent higher at ₹7,211.40 apiece on the BSE, ahead of the announcement of Q3FY24 results.