The automaker’s revenue and margins were boosted by a robust improvement in volume, higher average selling prices and commodity tailwinds.
18 Apr 2024 | 6821 Views | By Kiran Murali
Bajaj Auto posted a 35% on-year growth in its net profit for the fourth quarter of the financial year 2024, while its profit for the full financial year 2025 rose 33% to an all-time high.
Robust improvement in volume, on top of higher average selling prices and commodity tailwinds ...
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Bajaj Auto posted a 35% on-year growth in its net profit for the fourth quarter of the financial year 2024, while its profit for the full financial year 2025 rose 33% to an all-time high.
Robust improvement in volume, on top of higher average selling prices and commodity tailwinds boosted the company’s top line and margins during the periods.
The Pune-based automaker’s fourth quarter standalone profit after tax came in at Rs 1,936 crore, against Rs 1,432.88 crore in the year-ago period. For the full year ended March, Bajaj Auto clocked a net profit of Rs 7,478.79 crore, compared with Rs 5,627.60 crore in the year-ago quarter.
For the fourth quarter, Bajaj Auto reported a 29% growth in its revenue from operations to Rs 11,484.68 crore.
Revenue was led by the broad-based buoyancy that was sustained in the domestic business and aided by steady exports, notwithstanding the continued challenges in overseas markets, the company said in a press release.
The revenue grew on higher volume, prices, and a better mix of products. The automaker sold a total of 10.69 lakh vehicles during the quarter, up 24% from 8,.60 lakh units in the year-ago period.
Total two-wheeler volume rose 26% to 9,16,817 units. Domestic sales grew 32% to 5,46,881 units, while exports also improved by 19% to 3,69,936 units. Total commercial vehicle volume also increased by 13% to 1,51,759 units with domestic volume growing 10% and exports rising 20%.
Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA), or operating profit, was 34% higher at Rs 2,307 crore during the period as revenue grew at a higher pace. EBITDA margin improved to 20.1% from 19.3% in the comparable period.
The company’s total expenses during the quarter rose 28% to Rs 9,291.77 crore. The cost of raw materials and components consumed accounts for a significant part of the company’s total expense.
FY24 Results
Bajaj Auto clocked its highest-ever revenue from operations during the financial year with a 23% growth to Rs 44,685.23 crore. The revenue was driven by higher vehicle sales volume, as well as by a richer product mix and price increases, which aided higher average selling prices.
The automaker sold a total of 43.51 lakh vehicles in the financial year, up 11% on the year. Total two-wheeler volume rose 8% to 37.28 lakh units, as strong domestic demand offset the impact of weakness in the export market. Total commercial vehicle volume also increased 28% to 6.23 lakh units, supported by the domestic market.
“The consistent growth across all quarters (with quarterly highs on 3/4) reflected the resilient business model, where a strong domestic performance more than made up for muted exports which continued to be impacted by the challenging context in overseas markets,” the company said.
Bajaj Auto saw its full-year EBITDA, or operating profit, grow 35% to Rs 8,825 crore during the period. The rate of increase in expenses was lower than the revenue growth. Total expenses during the period were 20% higher at Rs 36,265.67 crore, primarily driven by the cost of raw materials and components consumed.
On the profitability front, Bajaj Auto’s EBITDA margin, or operating profit margin, improved by 180 basis points to 19.7%.
Meanwhile, the company’s board has recommended a final dividend of Rs 80 per share to shareholders, totalling to Rs 2,233 crore.