Bajaj Auto Q2FY22 Results: Net profit grows 12% YoY to Rs 1275 cr amid surge in demand

Two-wheeler major Bajaj Auto registered healthy earnings during the July-September quarter of the financial year 2021-22. The company reported growth on all fronts, while margins saw pressure. It mentioned the domestic motorcycle market witnessed reasonable recovery post-second covid wave.

The company’s profit grew by 12 per cent to Rs 1274.5 crore in the second quarter of the financial year (Q2FY22) as compared to Rs 1138.2 crore in the same quarter a year ago. Similarly, the revenues from operations jumped 22.4 per cent to Rs 8762.2 crore in Q2FY22 versus Rs 7156 crore in Q2FY21.

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While the EBITDA of Bajaj Auto posted a double digits growth of around 11 per cent to Rs 1401.1 crore in Q2FY22 as against Rs 1266.2 crore in the corresponding quarter a year ago, and the margins slipped by 170 basis points (bps) to 16 per cent from 17.7 per cent in year-on-year basis.

As on 30th September 2021, after payment of a dividend of Rs 4,051 crore, surplus cash, and cash equivalents stood at Rs 17,526 crore as against Rs 19,097 crore previous quarter in FY22, the company said in results statement on Wednesday.

In Q2FY22, the company witnessed two key developments: a) Increase in cost of raw material, which was partially offset with an increase in prices, and b) DGFT declared the rates towards RoDTEP and also allocated funds towards MEIS, Bajaj Auto said in results filing.

Bajaj Auto International Holdings BV (BAIH BV), a Netherlands-based 100 per cent subsidiary of Bajaj Auto Ltd, held a 47.99 per cent stake in KTM AG. BAIH BV, on 29 September 2021, swapped a 46.5 per cent stake in KTM AG for a 49.9 per cent stake in Pierer Bajaj AG. The resultant gain in fair value of Rs 501 crore is shown as an exceptional item in consolidated profit after tax of Bajaj Auto Ltd.