Bajaj Auto on Friday reported a surge in net profit by 20% on a year-on-year (yoy) basis at ₹1,530 crore for the July-September quarter this year, compared to ₹1,274 crore in the same period last year, the company said in a stock exchange filing. On the quarter-on-quarter basis, the net profit witnessed a growth of 30%, compared to ₹1,173 crore in the previous quarter.
Meanwhile, the company’s revenue from operations surged 16% YoY at ₹10,203 crores in the July-September quarter this year, compared to ₹8,762 crore in the same period last year. The company’s revenue surged 27.5% on sequential basis from ₹8,004 crore in the previous quarter.
The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) witnessed a growth of 25.5% YoY to ₹1,759 crore. Its EBITDA margin was up 125 basis points or 17.2% in the September quarter, compared to the same period last year, led by the judicious price increase, dynamic cost management and better foreign exchange realization. According to the company’s statement, this is the highest-ever EBITDA reported by the company.
“Margin improvement is being led by price increases, cost management and foreign exchange realization. Revenue growth is aided by the recovery of volumes on the improvement of semiconductor supplies. Improvement in chip supplies enabled a healthy build-back of inventory ahead of the festive season," the company says in a statement.
Moreover, the company’s two-wheelers and three-wheeler volumes doubled thus cushioning the drop in exports from deteriorating macros in the overseas market. Its domestic two-wheeler and commercial vehicle sales volume surged 30% at 6,94,375 units for the September quarter, compared to 5,32,216 units in the same period last year. Meanwhile, in H1 of FY23, the total sales volume surged 18% at 10,47,211 units compared to 8,89,353 units in the same period last year. Its domestic two-wheeler and commercial vehicle sales volume witnessed a growth of 97% for this quarter, compared to 3,52,836 units in the previous quarter.
However, for this quarter, the company’s exports declined by 4,56,637 units, compared to 6,12,191 in the same period last year. For H1 this year, its exports were down 18% at 10,37,447 units compared to 12,61,068 units in the same period last year.
“Macro-economic challenges in select overseas markets subdue exports billing volumes; however, the strong show in ASEAN (with the Philippines registering its highest sales) and improved foreign exchange realisations (79.75 in 02 FY23 vs. 77.43 in 01 FY23) partly alleviate the drag on turnover,” the company says.
