The manufacturer of two-wheelers, Bajaj Auto Ltd., reported on Wednesday that strong domestic demand for its motorcycles and three-wheelers contributed to a 37% YoY increase in net profit to Rs 2,042 crore in the December quarter compared to Rs 1,491 crore in the same quarter previous year. Analysts had anticipated that the car major would announce a thirty percent increase in earnings.
When compared to the same period last year, the auto major's standalone sales increased by 30% YoY to Rs 12,114 crore in Q3FY24 from Rs 9,315 crore. The revenue increase percentage agreed with analyst projections. According to Bajaj Auto, its Ebitda increased by 37% to Rs 2,430 crore for the quarter, and its Ebitda margin increased by 100 basis points year over year to 20.1 percent from 19.1 percent in the same quarter last year.
According to Bajaj Auto's results, revenue reached a new high of Rs 12,114 crores, primarily due to a sharp acceleration in the domestic business. The company also noted that a successful festive season activation and sharp execution helped to offset relatively weak but recovering export sales despite ongoing challenges in foreign markets.
Ebitda reached a record high as well, with improved realizations, dynamic cost control, and operating leverage playing major roles in the margin growth. It claimed that this more than offset the negative effects of competitive spending on the expansion of the electric scooter market.
According to Bajaj Auto, the domestic company had a better quarter with volume-led revenue increase of about 50% YoY. It further added that double-digit YoY growth was observed throughout all categories, supported by the motorcycle market's outperformance, especially in the 125cc+ segment. In addition, Bajaj Auto reported that the electric 2W/3W portfolio was steadily expanding and that there was a persistent trend for commercial vehicles.
Exports are approaching double-digit YoY revenue growth due to improved mix and dollar realization, even in unstable international markets. The quarter saw a minor increase in billing volumes; the step up in LA TAM, Asia, and premium bike exports offset the negative resulting from Africa (particularly Nigeria)," the statement read. "Overall market share continues to hold firm on the back of decisive steps."
According to Bajaj Auto, its domestic motorcycle segment, "turbocharged by the 125+ cc segment," maintained a strong growth pattern, growing two times the market. With a quarterly volume that is six times higher than the rest of the industry, Pulsar is still setting the standard for competitive growth in the 125cc+ segment.
Commercial vehicles continue to do well, according to Bajaj Auto, clocking in another quarter at the increased volume trajectory of more than 40,000 units per month. Plans for network expansion are moving forward due to the e3W's rising popularity and segment leadership in the early launch cities, according to Bajaj Auto. Currently available in 23 cities, the e3W will soon be available in double that number, according to Bajaj Auto.
"As Chetak e2W gradually ramps up, investments are paying off; volumes are over three times YoY, and its exit market share is at 14% (5 percent PY)." The new Urbane and Premium scooters from Chetak, which have cutting-edge styling, cutting-edge functionality, and exciting features to give customers a greater riding experience and make it an absolute leader in its class, strengthened the company's portfolio, the statement reads. Bajaj Auto's BSE share finished 1.7% higher at Rs 7,211.4 on Wednesday.
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