The maker of the Pulsar and Discover motorcycles reported a net profit of Rs2,042 crore for the three months through December, compared with Rs1,491 crore a year earlier and the average estimate of Rs1784.50 crore in a Bloomberg poll of analysts.
This was the first time the company’s quarterly profit topped the Rs2000 crore mark. Net sales at the Pune-based manufacturer also rose by a third to Rs12,114 crore from Rs9,315 crore.
Bajaj Auto sold 120,0997 units of two- and three-wheelers (domestic sales, exports and the Chetak electric scooters) in the past quarter, up 22% from a year earlier. Domestic sales grew 43%, compensating for a 4% decline in exports.
“We have posted an all-time high quarterly performance. This is even as the international business remains soft due to the impact of inflation in many markets,” executive director Rakesh Sharma told reporters on a post-earnings call. The company’s export numbers are still 30% below its peak seen in FY22, he said.
Earnings before interest, tax, depreciation, and amortisation (Ebitda) was also at its highest ever for a quarter at Rs 2,430 crore, up 37% YoY. The company said better realisations, dynamic cost management and operating leverage more than absorbed a drag from competitive investments on growing scale on electric scooters.
Strong sales of 125cc plus motorcycles, sustained momentum on commercial vehicles and steady ramp up of the electric two- and three-wheeler portfolio bumped up its Ebitda margin to 20.1%, up a percentage point from a year earlier.Sales volume of the Pulsar — one of the most profitable models for the company — reached a record quarterly high at 400,000 units. It now accounts for 28% of Bajaj Auto’s total motorcycle sales.
Updating on the Chetak which saw a rapid increase in volume and market share in the December quarter, making Bajaj the third largest electric scooter maker after Ola Electric and TVS, displacing Ather Energy in December, Sharma said: from 10,000 units a month, Bajaj plans to ramp up the production to 15,000 units in the March quarter. The company is in the process of doubling its sales network to 200 cities by the next festive season.
Meanwhile, to keep up the sales momentum in its core motorcycle business, Bajaj plans to launch facelifts and all-new models in the coming quarters.
At the end of the December quarter, the company’s cash surplus was Rs 18,439 crore. Bajaj plans to buy back shares worth Rs 4,000 crores at Rs 10,000 each. The company said it is currently seeking shareholder approval for the buyback.
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
