Bajaj Auto Q1 FY25 results surpassed analysts’ expectations, helped by a better product mix, higher selling prices, and strong sales.
Robust Financial Performance
Bajaj Auto Ltd announced an 18 percent year-on-year increase in its Q1 FY25 consolidated net profit, reaching Rs 1,941.79 crore.
This impressive growth was driven by consistent demand, robust two-wheeler sales, and higher realisations.
The company’s revenue for the April-June quarter surged 16 percent year-on-year to Rs 11,932 crore, boosted by strong vehicle sales and record spares revenue, which contributed to a higher average selling price (ASP).
Exceeding Market Expectations
The results surpassed analysts’ expectations. A Moneycontrol poll of seven brokerage estimates had projected Bajaj Auto’s fiscal first quarter net profit growth at 18 percent year-on-year to Rs 1,965 crore and revenue growth at 14 percent to Rs 11,793 crore.
Sales Growth
The Rajiv Bajaj-led company sold 11,02,056 units in the June 2024 quarter, marking a 7 percent increase compared to the 10,27,407 units sold in the same quarter last year.
The domestic business maintained its momentum and resilience, achieving its ninth consecutive quarter of double-digit growth.
This growth was broad-based, spanning motorcycles, commercial vehicles, and electric scooters. The electric portfolio, comprising e2W and e3W, accounted for 14 percent of domestic revenues this quarter, reflecting steady progress in this segment.
Operational Efficiency
Bajaj Auto’s earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 24 percent to Rs 2,415 crore from Rs 1,954 crore in Q1 FY24. The operating margin improved by 130 basis points to 20.2 percent from 19 percent year-on-year.
The company attributed this improvement to better realisation and cost reduction, which more than offset the drag from the growing e2W business.
Strong Export Growth
Bajaj Auto experienced healthy export growth, with revenue rising in double digits year-on-year.
The company reported significant revenue growth in LATAM, achieving its highest ever performance, and an uptick in Asia, which helped mitigate challenges in Africa.
Consistent growth and market share gains over time have led to LATAM emerging as the largest region this quarter. Notably, the company commissioned its first owned overseas assembling facility in Manaus, Brazil, with an annual capacity of 20,000 units (single shift basis).
Conclusion
Bajaj Auto Ltd’s strong financial performance in Q1 FY25 reflects its strategic focus on broad-based growth across its portfolio, operational efficiency, and expanding its international footprint.
The company is well-positioned to continue its growth trajectory, leveraging its robust domestic and international sales momentum.
