Bajaj Auto Q1 PAT rises 18% to 1,941.79 cr on double digit revenue growth
Bajaj Auto’s domestic business grew by double digits for the ninth consecutive quarter driven by sustained growth across motorcycles, commercial vehicles and electric scooters portfolio
Pune-based two-wheeler major Bajaj Auto posted a 16 per cent rise in consolidated revenue from operations for the first quarter of the financial year 2024-25 to Rs 11,932.07 crore and an 18 per cent rise in profit after tax for the quarter to Rs 1,941.79 crore.
The revenue from operations grew due to strong vehicle sales, record revenue from spares, and volume expansion across both domestic and export businesses. The company stated that the favourable product mix also drives double-digit revenue growth. Standalone profit margins came in at 20.2 per cent, up 130 basis points year-on-year (Y-o-Y) driven by better realisation and cost reduction, which more than offset the drag from the growing electric two-wheeler business.
Bajaj Auto stock reacted positively as the results aligned with analyst estimates. The stock was up 1.57 per cent at 2:30 pm to Rs 9,827.85 apiece. Bloomberg analysts had estimated a revenue of Rs 11,812 crore and an Ebitda of Rs 2,363 crore with margins of 19 per cent.
Bajaj Auto’s domestic business grew by double digits for the ninth consecutive quarter driven by sustained growth across motorcycles, commercial vehicles, and electric scooters portfolio. The electric two-wheeler and three-wheelers comprised 14 per cent of domestic sales during the quarter under review compared to 6 per cent in Q1FY24.
Exports revenue grew double-digit Y-o-Y with Latin American markets clocking its highest ever and an uptick in Asia alleviating challenges in Africa. The first owned overseas assembling facility was commissioned in Manaus, Brazil with an annual capacity of 20,000 units (single shift basis).
By the end of one year, Triumph deliveries were over 60,000 units (19,000 units in Q1FY25) and over Rs 1,200 crore in sales since its launch. While the bike continues to be exported to 50 countries, Bajaj Auto is also expanding the domestic network for Triumph, now spanning across 100 showrooms, with another 150 planned in the coming months.
Commercial vehicle sales were around 100,000 units during the quarter. The electric three-wheeler network expanded to 200 cities (from 60 cities in March), with an exit market share reaching 30 per cent.
Chetak remains committed to innovation and expansion, as volumes doubled Y-o-Y despite a flattish industry. “Action underway on leveraging the wider Bajaj two-wheeler network for Chetak expansion (in 500 stores by quarter end), alongside a decisive product intervention through the launch of an affordable variant that blends sharp pricing, solid build, and agile performance,” Bajaj Auto said.
Bajaj Auto has surplus cash of Rs 16,764 crore, with strong free cash flow generation maintained. Capital of Rs 505 crore was infused into the wholly owned captive financing subsidiary to fund its scale-up across the country and build its future-ready capabilities.
First Published: Jul 16 2024 | 2:52 PM IST