Bajaj Auto doubles Q1 net profit, forms wholly-owned arm for EVs

Bajaj Auto doubled its net profit in Q1FY2022 and the company approved the formation of a wholly owned subsidiary for taking advantage of evolving opportunities in the electric and hybrid vehicles space.

Bajaj Auto reported a net profit at Rs 1,061 crore in Q1FY2022 as against Rs 528 crore in Q1 FY2021. Revenue from operations during Q1FY22 increased to Rs 7,386 crore from Rs 3,079 crore year ago.

EBITDA from operations was at 1,153 crore while EBITDA margin for Q1 FY2022 was 15.6 percent as against 18.1 percent in Q4 FY2021. The EBITDA margin was largely impacted on three counts according to a regulatory filing by the company, “Lower revenue from operations resulted in loss on spread of fixed costs by 160 bps. Increase in cost of raw-material, net increase in prices, resulted in lower EBITDA margin by 220 bps. The above was partially off-set from higher US dollar realisation and improved mix.”

For Q1FY2022, it sold almost one million units.

Bajaj Auto also informed the Bourses that it has approved the incorporation of a wholly owned subsidiary of the company. It will leverage the growth opportunities in the evolving mobility space and will help the Company venture into the manufacturing of Electric and Hybrid vehicles in the two-wheeler, three-wheeler and light four-wheeler categories.

The Bajaj Auto stock however closed the day off intra-day highs. But in terms of returns over a year, the stock price is up nearly 30 percent.