Bajaj Auto Reports Impressive 37% Surge in Q3 Net Profit, Exceeding ₹2,000 Crore Milestone

In the third quarter concluding on December 31, 2023, Bajaj Auto, the renowned automaker, disclosed a remarkable 37% surge in net profit, reaching ₹2,042 crore. This marked a substantial increase from ₹1,491 crore in the corresponding period the previous year and surpassed the anticipated ₹1,784.50 crore according to a Bloomberg analysts' poll. Notably, this quarter marked the first instance of the company's quarterly profit surpassing the ₹2000 crore milestone.

Sales for the Pune-based manufacturer also witnessed a notable uptick, ascending by one-third to ₹12.114 crore. Bajaj Auto accomplished sales of 1.30992 million units of two and three-wheelers, encompassing domestic sales, exports, and Chetak electric scooters—a 22% increase compared to the previous year. Domestic sales demonstrated a substantial 43% growth, effectively compensating for a 4% decline in exports.

During a post-earnings call with reporters, Executive Director Rakesh Sharma expressed satisfaction with the company's unprecedented quarterly performance. Despite challenges in the international business arena due to inflationary impacts in various markets, Bajaj Auto's export numbers still trail 30% below the peak observed in FY22.

Earnings before interest, tax, depreciation, and amortization (EBITDA) soared to an all-time high of ₹2,430 crore, reflecting a 37% year-on-year increase. This notable achievement was attributed to improved realizations, effective cost management, and operational leverage, which more than offset challenges posed by competitive investments in the expanding electric scooter segment.

The EBITDA margin expanded to 20.1%, marking a one-percentage-point increase from the previous year. The surge was credited to robust sales of 125cc-plus motorcycles, sustained momentum in commercial vehicles, and a consistent expansion in the electric two- and three-wheeler portfolio.

Sales volume for the highly profitable Pulsar model hit a record quarterly high at 400,000 units, constituting 28% of Bajaj Auto's total motorcycle sales. Regarding the Chetak, which experienced a rapid surge in volume and market share in the December quarter, Sharma outlined plans to escalate production from 10,000 units per month to 15,000 units in the forthcoming March quarter.