Bajaj Auto Limited is an Indian multinational automotive manufacturing company and is a part of the Bajaj Group. The company is India’s second-largest motorcycle manufacturer – and the third-largest globally. Bajaj Auto Limited also became the world’s most valuable two-wheeler company in December 2020, when it crossed a market capitalisation of ₹ 1 trillion.
The company announced its financial results for Q2 of FY2023-24 on October 18th, with the profit figures being much higher than what was initially predicted. Here is a snapshot of its performance during the quarter.
Additional Read: Q2 Results Dashboard
Table of Content
Key Financial Metrics
Performance Highlights
- Bajaj Auto Limited reported a 20% YoY increase in net profit (PAT) at ₹ 1,836.14 Cr. These figures are higher than the ₹ 1,784.5 Cr consensus forecast of analysts.
- The company’s total revenue from operations rose by 5.6% YoY to ₹ 10,777.27 Cr.
- The company’s consolidated net profit for Q2 of FY2023-24 grew by 17.48% YoY and 22.86% QoQ to ₹ 2,020.05 Cr.
- The exports showed signs of recovery in the midst of volatile market conditions, with volumes rising by 8% QoQ but were still down by 9% YoY.
- On the domestic front, Bajaj Auto Ltd. recorded double-digit growth, which drove its revenue.
- The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) increased by 21% YoY at ₹ 2,133 Cr, which was the company’s highest ever during a quarter. It also marked the first time the company broke the ₹ 2,000 Cr barrier during a quarter.
Additional Read: Bajaj Auto Share Price
The increase in net profit was primarily because of better realisation and a diverse product portfolio. However, the number of units sold in Q2 of FY2023-24 was 10,50,975, less than the 11,51,012 units sold during the same period last year.
The two and three-wheeler manufacturing giant ended the second quarter with an operational revenue of ₹ 10,777.27 Cr, which was up from its operational revenue of ₹ 10,202.77 Cr during the same period last year. This was majorly due to the decreasing commodity costs and price hikes the company put into effect. It also represented the company’s highest-ever revenue from operations during a quarter.
Additionally, Bajaj Auto Limited recorded a net profit of ₹ 1,836.14 Cr, which was also up from its net profit of ₹ 1,530 Cr during Q2 of FY2022-23.
The EBITDA also expanded 260 basis points to 19.8% from 17.2% last year.
Management Commentary
Major Announcements
- The company revealed it was preparing to launch the Scrambler 400X and start its export in Q3 of FY2023-24.
- Bajaj Auto Ltd. also disclosed that it was working on taking the brand experience to more than 100 cities by the end of the year.
- The company amended its dividend policy. It revealed that the Board of Directors will recommend the dividend payout based on the PAT for the year, surplus funds available, and a range of internal and external factors.
Standalone YoY Comparison: Reported Financial Figures
| Particulars | H1 FY 2022-23 | H1 FY 2023-24 | YoY |
| Turnover | ₹ 18,860 Cr | ₹ 21,795 Cr | 16% |
| Revenue from Operations | ₹ 18,208 Cr | ₹ 21,087 Cr | 16% |
| EBITDA | ₹ 3,056 Cr | ₹ 4,088 Cr | 34% |
| EBITDA % | 16.8% | 19.4% | +260 bps |
| Profit Before Tax (PBT) | ₹ 3,559 Cr | ₹ 4,605 Cr | 29% |
| Profit After Tax | ₹ 2,703 Cr | ₹ 3,501 Cr | 30% |
Standalone QoQ Comparison: Reported Financial Figures
| Particulars | Q1 FY 2023-24 | Q2 FY 2023-24 | QoQ |
| Turnover | ₹ 10,656 Cr | ₹ 11,139 Cr | 5% |
| Revenue from Operations | ₹ 10,310 Cr | ₹ 10,777 Cr | 5% |
| EBITDA | ₹ 1,954 Cr | ₹ 2,133 Cr | 9% |
| EBITDA % | 19% | 19.8% | +80 bps |
| Profit Before Tax (PBT) | ₹ 2,205 Cr | ₹ 2,400 Cr | 9% |
| Profit After Tax | ₹ 1,665 Cr | ₹ 1,836 Cr | 10% |
Volumes YoY Comparison (Bajaj Auto Ltd. + Chetak Technology Ltd.)
| Particulars | H1 FY 2022-23 (Units Sold) | H1 FY 2023-24 (Units Sold) | Change |
| Domestic | |||
| Two-wheelers | 9,35,552 | 10,48,251 | 12% |
| Commercial Vehicles | 1, 11,659 | 2,30,861 | 107% |
| Exports | |||
| Two-wheelers | 9,30,640 | 7,22,662 | -22% |
| Commercial Vehicles | 1,06,807 | 79,586 | -25% |
| Total | |||
| Two-wheelers | 18,66, 192 | 17,70,913 | -5% |
| Commercial Vehicles | 2, 18,466 | 3,10,447 | 42% |
Stock Performance
Bajaj Auto Limited released its financial results for the second quarter of FY2023-24 on October 18th. The company’s stock opened at ₹5,150 on the day and closed at ₹ 5,143.7. However, the company’s shares ended the day on BSE with an increase of 3.20% over the previous close.
About the Company
Bajaj Auto Ltd. is the country’s largest exporter of motorcycles and three-wheelers and belongs to the Bajaj Group. The company is the world’s third-largest motorcycle manufacturer and has cemented its position in various segments, including utility, commuter and sports motorcycles, along with intra-city vehicles. Bajaj Auto Ltd. currently holds 47.99% of KTM AG of Austria via its subsidiary Bajaj Auto International Holdings BV Netherlands.
The company has also unveiled various best-selling two-wheelers, including Dominar, Pulsar, and Platina models, along with RE and Maxima three-wheelers. It was named the ‘Company of the Year’ by the Economic Times in 2010-11.
Sources:
