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Pune-based automaker Bajaj Auto Ltd on Tuesday (January 28) reported a 3.3% year-on-year (YoY) increase in net profit at ₹2,108.7 crore for the third quarter that ended on December 31, 2024.
In the corresponding quarter of the previous fiscal, Bajaj Auto posted a net profit of ₹2,042 crore. The CNBC-TV18 poll had predicted a profit of ₹2,128 crore for the quarter under review.
The company's revenue from operations was up 5.7% to ₹12,807 crore against ₹12,114 crore in the corresponding period of the preceding fiscal, driven by strong exports, a robust domestic green energy portfolio, and another record performance in spares. However, it missed the estimated revenue of ₹12,963 crore.
At the operating level, EBITDA grew 6.2% to ₹2,581 crore in the third quarter of this fiscal over ₹2,430 crore in the year-ago quarter. The CNBC-TV18 poll had predicted an EBITDA of ₹2,545 crore for the quarter under review.
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The EBITDA margin stood at 20.2% in the reporting quarter compared to 20.1% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. The CNBC-TV18 poll had predicted a margin of 19.6% for the quarter under review.
The company achieved its highest-ever festive retail volumes in the domestic market, although billed volumes were recalibrated to normalise channel inventory built up in the previous quarter. Exports saw a broad-based recovery, resulting in the return of over 500,000 units after nine quarters.
The company also posted consistent profit growth, with EBITDA and PAT surpassing the ₹2,500-crore and ₹2,000-crore milestones, respectively. The EBITDA margin remained steady at 20.2%, reflecting a 10 basis point improvement YoY, as favourable USD/INR realisations and dynamic P&L management, including judicious pricing and cost efficiencies, offset the significant investments being made in strategic priorities.
Bajaj Auto’s domestic business was led by its Green Energy portfolio, which now contributes approximately 45% of revenue, up from 30% last year, as the company’s focused strategy takes effect. The electric vehicle segment made significant strides, delivering another quarter of around 100,000 units, nearly achieving leadership in the sector by doubling its share in electric two-wheelers (e2Ws) and tripling its share in electric three-wheelers (e3Ws) compared to last year, while moving from a loss to marginally positive EBITDA.
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In the competitive 125cc+ motorcycle market, the company delivered its highest-ever quarterly retail volumes, buoyed by the festive season. Despite retail volume growth and maintaining market share in the strategically important 125cc+ segment, the overall performance was impacted by a conscious decision not to engage in deep price discounting.
Bajaj Auto's premium brands also performed well, with Triumph delivering its highest-ever quarterly retail volumes, driven by the Speed 400 upgrade, and KTM’s Duke 200/250 continuing to lead. Triumph's network expansion is underway, now covering nearly 55% of the addressable market with 126 dealerships, while KTM expanded its India portfolio with 10 internationally acclaimed high-performance bikes, up to 1,390cc. Commercial vehicles also saw sustained growth, with quarterly retails hitting an all-time high.
Electric three-wheeler volumes surged 5x year-on-year, with market share expanding to a new quarter-high, supported by an extended network from 600 to over 850 touchpoints. Chetak maintained strong momentum, with volumes increasing 2.5x YoY and an exit market share of 25%, up by 1,100 basis points.
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Exports continued to recover, with double-digit revenue growth for the fourth consecutive quarter. The company made significant strides across Africa, Asia, and Latin America, more than offsetting a significant drop in KTM exports. LATAM saw continued growth, with another record quarter, while Africa contributed to growth with volumes in Nigeria recovering to over 100,000 units.
Bajaj Auto also asserted cash generation, adding approximately ₹3,000 crore in free cash flow during the first nine months of FY25. The company maintains a robust balance sheet, with surplus funds of nearly ₹15,000 crore after infusing capital into Bajaj Auto Credit Ltd, executing capex of approximately ₹450 crore, and paying over ₹2,200 crore in dividends to shareholders.
The results came after the close of the market hours. Shares of Bajaj Auto Limited ended at ₹8,421.80, up by ₹41.45, or 0.49%, on the BSE.
