Bajaj Auto has reported outstanding financial results for the quarter ending December 2023, with record-breaking figures in Revenue from Operations, EBITDA, and Profit After Tax (PAT).
Domestic performance has been fairly healthy pushing ahead 50% revenue growth, while the exports have seen some setbacks according to the geopolitical issues, the revenues are up by 10% with lower than expected volumes. Dinesh Thapar, Chief Financial Officer, Bajaj Auto Ltd is pleased with the results, and is confident the export market issues will be solved as the year progresses.
Thapar expressed satisfaction with the company's performance, highlighting it as the third successive quarter of achieving new highs in both top-line and bottom-line figures. Despite challenges in various export markets, the business showcased resilience and momentum.
The domestic business has been the driving force behind the remarkable revenue growth, overcoming challenges in export sales. The domestic business reported nearly 50% YoY revenue growth, covering motorcycles, commercial vehicles, and the electric 2W / 3W portfolio. The quarterly EBITDA reached its highest ever, crossing INR 2,430 crore, with a margin exceeding 20%. Profit After Tax surpassed INR 2,000 crore for the first time. “While facing volatility in overseas markets, exports achieved double-digit YoY revenue growth. Market share held steady, with a slight uptick in billing volumes in specific regions” he added.
Further expanding on exports and market share, he mentioned that domestic motorcycles, particularly in the 125cc+ segment, demonstrated exceptional growth, outpacing the market. The Pulsar brand played a pivotal role. While the commercial vehicles segment maintained a robust performance, reaching a stepped-up volume trajectory of over 40K units per month.
Investments in Chetak E2W showcased positive results, with volumes exceeding 3X YoY, reaching a market share of 14%. Triumph motorcycles achieved encouraging double-digit segment market share across select cities, with exports commencing during the quarter.
Revenue and Earnings Surge To New Heights
The Revenue from Operations hit an all-time high at INR 12,114 crore, showcasing a robust growth of 30% Year over Year (YoY). This remarkable achievement is primarily attributed to the acceleration in the domestic business. The Quarterly EBITDA also reached its peak at INR 2,430 crore, marking a substantial 37% YoY increase. The Profit After Tax has surpassed the INR 2,000 crore milestone, demonstrating the financial strength and resilience of Bajaj Auto.
The EBITDA Margin experienced an uptick to 20.1%, showing a YoY increase of +100 basis points. This improvement is attributed to better realizations, dynamic cost management, and operating leverage. Despite competitive investments in the growing scale of electric scooters, the company has successfully absorbed the associated drag.
Commercial vehicles also demonstrated a strong performance, maintaining a volume trajectory of over 40,000 units per month. The popularity of E3Ws has prompted an advancement in network expansion plans, currently available in 23 cities with ongoing efforts to double this in the coming months. Bajaj will invest more in the E3W business further adding to capacity expansion.
Despite challenges in overseas markets, Bajaj Auto reported near-double-digit YoY revenue growth in exports. The company's decisive actions have ensured a steady market share, with a slight uptick in billing volumes. The quarter saw growth in Latin America, Asia, and premium bike exports, offsetting challenges in Africa, notably Nigeria.
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