After reporting a stellar fourth quarter, Bajaj Auto, India's third-largest two-wheeler company shows no signs of a slowdown and expects to outpace the industry in FY25 for the second year running.
"On the positive side, we expect the domestic industry to grow at a good rate of 7 percent to 8 percent per annum, with the upper half of the demand pyramid growing significantly faster," Rakesh Sharma, Executive Director of the company said in a post-result conference call.
The management emphasized that their strategy revolves around prioritizing the company's positioning, readiness, and responsiveness. The company maintains a strong presence in the market while staying focused through fully built units (FBU) and positions them well to capitalize on opportunities and continue outpacing industry growth, as demonstrated in FY24.
Bajaj is of the view that consumer confidence is on the rise, evident in longer loan tenures and increased financing adoption. While overseas markets, barring a few exceptions, are on the path to recovery, the expanding adoption of electric vehicles presents a new opportunity. "Additionally, the favorable cost environment and the gradual devaluation of the Indian rupee are beneficial for our export operations", Bajaj Auto stated, citing the positive levers of the growth in the coming quarters.
The home-grown Pulsar maker also announced that it has now received production-linked incentive (PLI) certificates for all five of its electric three-wheeler models, and recently for both of its electric two-wheeler Chetak models.
It's been a year full of records for the Pune-based automobile giant as it has clocked the highest-ever revenue, EBITDA, and net profit. Furthermore, the company has clocked record Pulsar and KTM volumes in India.
As for the fourth quarter, it reported a consolidated net profit of Rs 2,011.43 crore, up by 18 percent from Rs 1,704.74 crore reported during the same period last year. The homegrown two- and three-wheeler manufacturer posted revenue of Rs 11,249.8 crore for the January-March quarter this year, up by 30 percent from Rs 8,660 crore during the same period last year.
Also Read: Bajaj Chetak records electrifying performance: Q4 sales equals previous year annual sales
Bajaj Auto shares have jumped 33 percent since January this year and have nearly doubled in the last 12 months, beating NSE Nifty 50, trailing only Tata Motors, which has delivered over a 100 percent return during the same period. It has also rallied significantly faster than Hero MotoCorp and Eicher Motors.
Also Read: Bajaj Auto gains toehold in middleweight segment with 400cc Triumph Speed, Scrambler
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