Bajaj Auto Reports Record Quarterly Profit of Rs 2,746 Crore Driven by Volume Surge.

Bajaj Auto reported a record net profit of ₹2,746 crore for the March quarter, marking a 34% year-on-year increase, driven by impressive vehicle sales, a more premium product mix, and favorable currency exchange rates. Revenue from operations surged 32% to ₹16,006 crore, while EBITDA climbed 36% to ₹3,323 crore with margins standing at an impressive 20.8%. Total vehicle dispatches reached 1.37 million units, enhanced by successful launches in the Pulsar N and NS motorcycle series, alongside substantial growth in the KTM-Triumph portfolio and a significant milestone for the Chetak brand, which sold over 100,000 units in a single quarter.

Despite the extraordinary results, Rakesh Sharma, the executive director, cautioned that growth in motorcycle sales may moderate in the immediate future due to rising fuel and vehicle prices affecting consumer sentiment. The initial signs of this moderation were evident in April, where growth slowed to 9% compared to the robust 20% seen in the previous quarter. However, Sharma noted that the impact on Bajaj Auto would likely be limited since the company primarily benefits from the higher compartment of the market (150cc and above), while the more economically priced segments may experience greater softness.

For the full fiscal year ending March 31, Bajaj Auto’s total revenue reached an all-time high of ₹58,732 crore, a 17% increase, with net profit rising by 21% to ₹9,825 crore. The company achieved record sales volumes surpassing five million units, along with crossing several milestones in both domestic and export markets. Notably, commercial vehicle volumes exceeded 500,000 units, and Chetak revenues topped ₹4,000 crore. In light of these successes, the board proposed a final dividend of ₹150 per share and initiated a significant buyback plan, reflecting a 100% payout of the year’s profit after tax. Following this news, Bajaj Auto shares closed up 2.7% on the BSE, outperforming the benchmark Sensex, which increased by 1.2%.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)