Home » Bajaj Auto Limited – Q2 Results

Last Updated on October 19, 2023 by BFSLTeam BFSLTeam

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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

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

ParticularsH1 FY 2022-23H1 FY 2023-24YoY
Turnover₹ 18,860 Cr₹ 21,795 Cr16%
Revenue from Operations₹ 18,208 Cr₹ 21,087 Cr16%
EBITDA₹ 3,056 Cr₹ 4,088 Cr34%
EBITDA %16.8%19.4%+260 bps
Profit Before Tax (PBT)₹ 3,559 Cr₹ 4,605 Cr29%
Profit After Tax₹ 2,703 Cr₹ 3,501 Cr30%

Standalone QoQ Comparison: Reported Financial Figures

ParticularsQ1 FY 2023-24Q2 FY 2023-24QoQ
Turnover₹ 10,656 Cr₹ 11,139 Cr5%
Revenue from Operations₹ 10,310 Cr₹ 10,777 Cr5%
EBITDA₹ 1,954 Cr₹ 2,133 Cr9%
EBITDA %19%19.8%+80 bps
Profit Before Tax (PBT)₹ 2,205 Cr₹ 2,400 Cr9%
Profit After Tax₹ 1,665 Cr₹ 1,836 Cr10%

Volumes YoY Comparison (Bajaj Auto Ltd. + Chetak Technology Ltd.) 

ParticularsH1 FY 2022-23 (Units Sold)H1 FY 2023-24 (Units Sold)Change
Domestic
Two-wheelers9,35,55210,48,25112%
Commercial Vehicles1, 11,6592,30,861107%
Exports
Two-wheelers9,30,6407,22,662-22%
Commercial Vehicles1,06,80779,586-25%
Total
Two-wheelers18,66, 19217,70,913-5%
Commercial Vehicles2, 18,4663,10,44742%

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:

https://www.indiatoday.in/auto/latest-auto-news/story/bajaj-auto-q2-results-profit-rises-20-revenue-ebitda-at-all-time-high-2450705-2023-10-18

https://www.cnbctv18.com/market/bajaj-auto-q2-results-2023-net-profit-q2-earnings-revenue-growth-ebitda-share-price-18086521.htm

https://zeenews.india.com/companies/bajaj-auto-logs-rs-1836-crore-pat-amends-dividend-policy-2677104.html

Bajaj Auto Limited

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