Green energy portfolio surges, domestic sales soar, and exports recover as company reports highest-ever revenue and profits
16 Oct 2024 | 4214 Views | By Autocar Professional Bureau
Bajaj Auto Limited, one of India's leading two-wheeler and three-wheeler manufacturers, reported stellar results for the second quarter of fiscal year 2025, with record-high sales and profits.
The company's performance was bolstered by robust domestic demand, a steady recovery in exports, and significant growth in its green energy portfolio.
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Bajaj Auto Limited, one of India's leading two-wheeler and three-wheeler manufacturers, reported stellar results for the second quarter of fiscal year 2025, with record-high sales and profits.
The company's performance was bolstered by robust domestic demand, a steady recovery in exports, and significant growth in its green energy portfolio.
Revenue from operations surged 22% year-over-year to ₹13,127 crore, crossing the ₹13,000 crore mark for the first time. This growth was underpinned by double-digit volume increases and a richer sales mix. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached an all-time high of ₹2,653 crore, up 24% from the previous year, with margins holding steady above 20%.
Profit After Tax (PAT), adjusted for an exceptional deferred tax provision, hit a new record of ₹2,216 crore, representing a 21% year-over-year increase. The reported PAT stood at ₹2,005 crore after accounting for a one-time deferred tax provision of ₹211 crore. Total sales volume grew 16% year-over-year to 12,21,504 units, with domestic sales rising 22% and exports increasing by 7%.
Bajaj Auto's green energy portfolio, comprising electric and CNG vehicles across both two-wheeler and three-wheeler segments, reached significant milestones in Q2.. It sold over 1 lakh EVs during the quarter. The green energy portfolio, including CNG, now contributes 40% of total domestic revenues, underscoring the company's successful transition towards sustainable mobility solutions.
The company maintained its momentum in the domestic market, achieving its highest revenue and tenth consecutive quarter of double-digit growth. Both motorcycles and commercial vehicles segments saw double-digit growth, while electric scooter sales nearly tripled year-over-year. Bajaj Auto's premium motorcycle brand, Pulsar, continued to drive growth in the sports segment. The company also launched the world's first CNG-integrated bike, the 'Freedom 125', which has seen strong initial demand with over 30,000 units billed since its introduction.
The partnership with Triumph Motorcycles showed promising results, with domestic sales reaching 10,000 units in Q2, a 50% increase from the previous quarter. The company expanded its Triumph dealer network to over 100 locations and introduced new models to strengthen its position in the premium segment.
Export revenues grew in double digits, benefiting from better USD/INR realization, a richer product mix, and record sales in Latin America. The Pulsar brand continued to gain traction across international markets, achieving its highest quarterly sales of over 110,000 units. While African markets, particularly Nigeria, remained below previous year levels, the company noted encouraging signs of recovery.
Bajaj Auto's commercial vehicle segment reached an all-time high of 140,000 units in Q2. The company is making significant strides in the electric three-wheeler market, doubling its market share to 35% since the end of the previous fiscal year. In the electric two-wheeler space, Bajaj's Chetak scooters saw a dramatic increase in sales, with volumes reaching 70,000 units, more than tripling year-over-year. The company's market share in the electric scooter segment rose to 21% in September, up from 11% in June, driven by the successful launch of an affordable variant and expanded distribution network.
Bajaj Auto continued its track record of strong cash generation, adding over ₹2,000 crore in free cash flow during the quarter. The company's balance sheet remains robust with a surplus cash position of ₹16,392 crore, even after investing ₹1,200 crore in strategic growth initiatives and distributing ₹2,233 crore as dividends in the first half of FY2025.
With record-breaking performance across key financial and operational metrics, Bajaj Auto appears well-positioned to capitalize on the growing demand for two-wheelers and three-wheelers in both domestic and international markets. The company's strong focus on green energy solutions and premium offerings is likely to drive future growth and profitability. However, potential challenges such as global economic uncertainties and fluctuations in raw material prices may require continued vigilance and adaptive strategies from the management team in the coming quarters.