Bajaj Auto Q4 Results: Profit Surges By More Than A Third, Revenue Up 29%

Bajaj Auto Ltd.'s earnings surged by more than a third in the fourth quarter of fiscal 2024, on the back of higher sales and a richer product mix.

Net profit of the Pulsar-maker rose 35.11% over the year-ago period to Rs 1,936 crore in the quarter ended March 31, 2024, on the back of revenue that was up 28.97% at Rs 11,484.68 crore, according to an exchange filing on Thursday. 

Analysts polled by Bloomberg had estimated the top line at Rs 11,114 crore and the bottom line at Rs 1,844 crore in the January-March period.

Bajaj Auto Q4 Results Key Highlights (Standalone, YoY)

• Revenue up 28.97% at Rs 11,484.68 crore (Estimate: Rs 11,114 crore).

• Ebitda up 34.35% at Rs 2,306.25 crore (Estimate: Rs 2,187 crore).

• Ebitda margin up 81 basis points at 20.08% (Estimate: 19.7%).

• Net profit up 35.11% at Rs 1,936 crore (Estimate: Rs 1,844 crore).

• Total sales up 24.25% at 10,62,426 units.

For the full fiscal, net profit surged 33% year-on-year to Rs 7,479 crore, on the back of revenue that rose 23% to Rs 44,685 crore, according to a statement accompanying the earnings.

“This has been a record year for Bajaj Auto on nearly all metrics,” Dinesh Thapar, chief financial officer at Bajaj Auto, said during a virtual press conference following the earnings.

“While exports lagged, the domestic business more than made up for the shortfall. The premiumisation at play (in India's two-wheeler industry) has resulted in highest ever operational profitability for Bajaj Auto.”

India > Exports

Domestic two-wheeler sales of the Pune-based automaker surged 32% year-on-year to 5,46,881 units in January-March 2024, even as exports rose 19% to 3,69,936 units. For the full fiscal, the company's two-wheeler sales in India rose by a fourth to 22,50,585 units, even as exports fell 10% year-on-year to 14,77,338 units.

The India business now accounts for a little over 60% of the company's two-wheeler volume. Exports and domestic operations were on a more even keel in fiscal 2023.

CFO Thapar cited premiumisation at play in India's two-wheeler industry for the expanded volume, as well as growth in operational profitability despite “significant investment on expanding electric scooter”.

“The sweet spot…is now the 125-200 cc segment, with 125 cc motorcycles as the volume driver,” Thapar said. Bajaj Auto has clocked 4 times growth in the executive segment versus the rest of the industry to enjoy 25% market share.

Moreover, 18,800 Triumph 400 motorcycles were sold in January-March, over and above the record volume clocked by sister brand KTM.

In the three-wheeler space, Bajaj Auto clocked 1,00,000 units in January-March 2024, indicating a 10% growth year-on-year. Exports rose 20% year-on-year to 41,210 units. The company is now pushing its electric three-wheelers—they are now available in 60 cities, up from 23 cities in October-December 2023.

Among electric two-wheelers, the Chetak brand delivered its highest ever quarterly volume—a level that was greater than what was sold in all of last year.

Fund Infusion, Appointment

Bajaj Auto has approved an additional fund infusion of Rs 2,250 crore in wholly owned subsidiary Bajaj Auto Credit Ltd. and decided to grant a revolving credit line of an equal amount as standby liquidity support.

Separately, the company has appointed Ramtilak Ananthan as its chief technology officer, effective April 1. The current CTO, Abraham Joseph, has been appointed as the managing director of wholly owned unit Chetak Technology Pvt.

On Thursday, Bajaj Auto shares rose 1.11% to Rs 9,017.75 apiece on the BSE, even as the benchmark Sensex ended the day 0.62% lower at 72,488.99 points.