Bajaj Auto Q1 Results: Net profit surges 41.8% YoY to Rs 1,665 crore; beats estimates

Bajaj Auto Q1 Results: Bajaj Auto on Tuesday reported a 41.8 per cent year-on-year (YoY) rise in its standalone net profit at Rs 1,664.77 crore for the quarter ended June 30, 2023 (Q1FY24). The company had posted a profit of Rs 1,173.30 crore in the year-ago period. Total revenue from operations came in at Rs 10,309.77 crore, up 28.79 per cent against Rs 8,004.97 crore logged in the corresponding quarter of the previous fiscal. The company said its revenue growth was on the back of double-digit volume growth, with sustained buoyancy on the domestic front cushioning the weak exports.

The net profit beat analysts' expectations. Zee Business Research had pegged a net profit of Rs 1,620 crore for the quarter under review. However, revenue missed estimates by a whisker. The research desk had estimated the company to report a revenue of Rs 10,450 crore.

Further, the company said it reported its highest quarterly EBITDA of Rs 1,954 crore, a growth of 51 per cent YoY (14 per cent QoQ). Margin came in at 19 per cent, up +280 bps YoY, driven by dynamic price vs. cost management, better foreign exchange realisation, and operating leverage; the slight dip sequentially was from the planned typical seasonal skew for commuter motorcycles, the company said in its press release. 

Zee Business analysts had estimated EBITDA to come in at Rs 1,920 crore, compared to Rs 1,297 crore seen in the previous quarter, up 48 per cent. The company's margin, a key measure of profitability for a business, was estimated to rise by 220 basis points (bps) to 18.4 per cent QoQ against 16.2 per cent in Q4FY23.

The company further said that its domestic revenues registered their biggest-ever quarter, maintaining their double-digit growth trajectory yet again. All businesses contributed to the solid delivery: robust double-digit motorcycle growth, consistent industry-leading 3W performance, and steady scaling up on Chetak EV, it said.

Source: Earnings release