Bajaj Auto Q3 Results: Two-wheeler major beats analysts' estimates with 23% jump in profit, margin expansion

Bajaj Auto on Wednesday reported a 22.8 per cent increase in net profit to Rs 1,491.4 crore for the quarter ended December 2022. Its revenue grew 3.3 per cent on a year-on-year basis to Rs 9,315.1 crore, according to a regulatory filing.

Both topline and bottomline exceeded analysts' estimates.

According to Zee Business research, the company's quarterly net profit was estimated at Rs 1,365 crore and revenue at Rs 8,950 crore.

Total sales volumes — comprising two-wheelers and commercial vehicles in the domestic and export markets — decreased 16.8 per cent on a year-on-year basis to 9,83,276 units, according to a company statement.

The company’s EBITDA margin — a key measure of a business's profitability — expanded by 390 basis points to 19.1 per cent compared with the year-ago period.

Bajaj Auto's margin was pegged at 17.8 per cent, according to Zee Business research.

The company reported a record quarterly EBITDA of Rs 1,777 crore, surpassing the previous quarter's record.

Bajaj Auto said its domestic business saw sustained double-digit revenue growth across two- and three-wheeler segments, with the performance in two-wheelers buoyed particularly by sales in the 125 cc+ category during the festive season.

Bajaj Auto shares ended higher by Rs 32.2 or 0.9 per cent at Rs 3,717.4 apiece on BSE minutes after the release of the earnings report. 

The Bajaj Auto stock gained 2.5 per cent in value in the quarter ended December 2022, a period in which the Sensex benchmark rose 5.9 per cent. 

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