Bajaj Auto on volume growth of Rs. 2,746 crore in quarterly profit

Bajaj Auto closed the March quarter with its highest quarterly net profit at ₹2,746 crore, up 34% year-on-year, buoyed by record vehicle sales, a richer mix of pricier models and a favorable rupee.

Revenue from operations rose 32% to ₹16,006 crore in the three months ended March 31. Ebitda grew 36% to ₹ 3,323 crore with a margin of 20.8%.

Domestic motorcycles posted a milestone quarter with total vehicle dispatches up 24% to 1.37 million units on the back of product launches in the Pulsar N and NS series. The KTM-Triumph portfolio continued its strong run with over 40% growth, while the Chetak brand crossed the 100,000-unit retail milestone in a single quarter for the first time.

Exports crossed 600,000 units in the quarter, with revenues up more than 30% year-on-year.

Rakesh Sharma, executive director, however, predicts that industry growth in motorcycles will ease in the coming months as fuel and vehicle price hikes are likely to weigh on consumer sentiment and sales.

“We have seen signs of softening in sales in the month of April,” Sharma said in a post-earnings media call, citing growth of 9% in April compared to 20% in the March quarter.

However, he expects the “softening of demand” to affect the “bottom half” (100-125cc) of the market more than the “top half” (150ccc and above). Bajaj Auto gets most of its sales from the top half, so the company is unlikely to be affected, he said. Also, a weaker rupee and stronger exports will keep the automaker in good stead, according to Sharma.

For the full year ended March 31, income from operations rose 17% to an all-time high of ₹58,732 crore. Net profit rose 21% to ₹9,825 crore. Ebitda rose 19% to ₹12,019 crore, margin improved 30 basis points to 20.5%. Total volumes for the year crossed five million units – up 10%, scaling a new record, surpassing the company’s previous peak in FY19. The year-round performance was driven by strength in domestic and export markets alike, Sharma said.

Commercial vehicle volumes crossed 500,000 units for the first time, exports crossed 20 lakh units and Chetak revenues topped ₹4,000 crore.

In a separate filing, the company said it has reappointed Sharma as joint managing director with effect from June 1 for a period of 3 years till 2029, subject to shareholders’ approval.

The board recommended a final dividend of ₹150 per share and approved the buyback of 4.69 million shares at ₹12,000 each, totaling ₹5,633 crore – which together represent a payout of 100% of the full year’s profit after tax.

On the BSE, Bajaj Auto shares rose 2.7% to Rs. It closed at 10,314.60. The benchmark Sensex closed up 1.2%.