Bajaj Auto Limited (BAL) on October 14 said its standalone net profit for the quarter ended September 2022 stood at Rs 1,530.00 crore, a 20 percent increase from Rs 1,274.55 crore reported in the same quarter last year. On a Quarter on Quarter (QoQ) basis, it rose 30 percent from 1,173.30 crore in the previous quarter.
The company's revenue from operations stood at Rs 10,202.77 crore, which was a 16 percent increase from Rs 8,762.18 crore logged in the corresponding quarter of the previous fiscal, the company said in an exchange filing. On a sequential basis, its revenue rose 27.45 percent from Rs 8,004.90 crore in Q1 FY 2022-23.
The Pune-based automaker's earnings before interest, taxes, depreciation and amortization (EBITDA) grew 25.5 percent on a Year on Year (YoY) basis to Rs 1,759 crore. Operating margin also skyrocketed 125 basis points to 17.2 percent during the quarter under review.
“Revenue growth is aided by the recovery of volumes on the improvement of semiconductor supplies. Margin up by 100 basis points led by judicious price increases, dynamic cost management and better foreign exchange realization . Continued improvement in chip supplies enabled a healthy build-back of inventory ahead of the festive season," BAL said in a statement.
BAL's total sales in the quarter rose 0.6 percent on a YOY basis to 11.51 lakh units, while sales of two-wheelers dropped by 1.1 percent to 10.19 lakh units.
"Rebound in domestic motorcycle market share, led by the robust momentum on the sports portfolio. Pulsar brand continues to deliver a solid performance; the newly launched N160 was extended across the country with impactful activation to bring its proposition alive," the statement further added.
It may be recalled that during the Q1 results announcement, Bajaj Auto had stated that sales in the quarter were significantly constrained by the inadequate availability of semiconductors even though the situation improved in the latter part as new supply sources were developed.
Analysts, while expecting Bajaj Auto to witness positive growth in numbers in the domestic market, also foresaw sales volume could prove a drag on September quarter numbers.
The numbers were better than the estimates by brokerage firms. Kotak Institutional Investors (KIE) expected the auto major’s revenue to grow around 20 percent QoQ and around 10 percent YoY, while operating profit was projected to rise 20-21 percent QoQ and 11-12.5 percent YoY.
IIFL had predicted that Bajaj Auto’s volumes will improve by 23 percent QoQ (low base due to chip shortage), but would be flat on a YoY basis.
While the auto sector did well, with wholesale volumes picking up and semiconductor shortage easing, the two-wheeler (2W) segment has been facing headwinds. Patchy monsoon is affecting rural demand and this is affecting the 2W segment, particularly in the entry-level bike (upto 110cc) segment.
"In a market that is still significantly lower than pre-COVID, although recovering, Bajaj three wheelers delivered an industry leading performance, while retaining its strong position across segments; CNG does particularly well and is growing penetration," said BAL.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
