Bajaj Auto Q1 results beat estimates, net profit rises 18% on-year to Rs 1,988 crore; shares gain

Bajaj Auto's popular bike Pulsar also retained its double-digit growth trajectory, aided by a premiumisation thrust, the company said.

Bajaj Auto Ltd on July 16 posted an 18 percent on-year rise in its Q1 FY25 consolidated net profit to Rs 1,941.79 crore, thanks to consistent demand, robust 2-wheeler sales and higher realisations.

The Pune-based automaker’s revenue during the April-June quarter jumped 16 percent on-year to Rs 11,932 crore, aided by robust vehicles sales and record spares revenue, leading to a higher average selling price (ASP).

Bajaj Auto results exceeded analysts’ expectations. A Moneycontrol poll of seven brokerage estimates pegged Bajaj Auto's fiscal first quarter net profit growth at 18 percent on-year to Rs 1,965 crore and revenue growth at 14 percent to Rs 11,793 crore.

The Rajiv Bajaj-led company sold 11,02,056 units of vehicles in the June 2024 quarter, a growth of 7 percent as against 10,27,407 units sold in the same quarter last year.

“Domestic business maintained its momentum and resilience, registering its ninth successive quarter of double-digit growth o Sustained broad-based growth across the motorcycles, commercial vehicles and electric scooters portfolio. The electric portfolio (e2W, e3W) comprised 14 percent of domestic revenues this quarter, which is a reflection of the steady work on building this,” the company said in a release.

The company’s earnings before interest, tax, depreciation and amortization (EBITDA) in Q1FY24 went up by 24 percent to Rs 2,415 crore from Rs 1,954 crore, while operating margin improved by 130 basis points (bps) to 20.2 percent from 19 percent YoY. The company claimed that this was driven by better realization and cost reduction which more than offset the drag from the growing e2W business;

The company saw a healthy export growth, with revenue rising in double-digit on-year. The homegrown automaker stated that the exports revenue grew double-digit YoY with LATAM clocking its highest ever and an uptick in Asia alleviating challenges in Africa.

“Consistent growth and market share gains over time has led to LATAM emerging as the largest region this quarter; notably, the first owned overseas assembling facility was commissioned in Manaus, Brazil with an annual capacity of 20,000 units (single shift basis),” added Bajaj Auto in a release.

Further, the company said its domestic business too maintained momentum registering ninth successive quarter of double-digit growth.

Bajaj Auto's popular motorcycle Pulsar also retained its double-digit growth trajectory, aided by a premiumisation thrust, the company said. The company said that this motorcycle witnessed “3X growth” over rest of industry on sports motorcycles, buoyed by product upgrades over time.

“This portfolio has been further bolstered by the recent launch of Pulsar NS400Z, the most powerful and ‘definitely daring’ leader of the Pulsar line-up," Bajaj Auto said.

Bajaj Auto shares extended gains, trading up 0.73 percent at Rs 9,743.50 on NSE at 3:00 pm.