The Pune-based automaker’s total sales volume improved by 7% on year. Operating profit margin expanded to 20.2% from 19.0% in the year-ago quarter.
16 Jul 2024 | 2824 Views | By By Kiran Murali and Radhika Dave
Bajaj Auto on Tuesday posted a 19% growth in its net profit for the first quarter of financial year 2024 on a year-on-year basis. Robust improvement in volumes and a better mix of higher margin models improved the automaker’s realisation and profitability during the quarter. Both revenue and operating profit ...
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Bajaj Auto on Tuesday posted a 19% growth in its net profit for the first quarter of financial year 2024 on a year-on-year basis. Robust improvement in volumes and a better mix of higher margin models improved the automaker’s realisation and profitability during the quarter. Both revenue and operating profit rose in double digits during the quarter.
The Pune-based company clocked a standalone net profit of Rs 1,988 crore during the April-June period, against Rs 1,665 crore in the year-ago quarter. Revenue from operations grew 16% on year to Rs 11,928 crore on the back of high single-digit growth in two-wheeler and three-wheeler dispatches during the period.
Bajaj Auto’s total wholesale volume, including two-wheelers and three-wheelers, increased by 7% on year in the quarter to 11.02 lakh units with an uptick in both domestic and export volumes. Total two-wheeler sales rose 7% to 9.51 lakh units while commercial vehicle volumes improved by 9% to 1.51 lakh units.
The domestic business maintained its momentum and resilience, registering its ninth successive quarter of double-digit growth, the automaker said in a press release. The company witnessed sustained broad-based growth across the motorcycles, commercial vehicles and electric scooters portfolio. Exports
The electric portfolio, including two and three-wheelers, accounted for 14% of domestic revenues in the quarter, up from 6% in the year-ago quarter. The automaker also noted that the revenue from operations was further driven by a favorable mix of products. While export volume improved by 9%, export revenue grew in double-digits with LATAM clocking its highest-ever sales and an uptick in Asia.
Meanwhile, Bajaj Auto’s operating profit, or Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA), grew at a higher rate of 24% on year, to Rs 2,415 crore. Operating profit margin, or EBITDA margin, expanded by 130 basis points to 20.2%. Total expenses in the quarter rose 14% to Rs 9,627.12 crore as the cost of materials and components consumed during the period increased by 12%.
The margin improvement was driven by better realization and cost reduction which more than offset the drag from the growing electric two-wheeler business, the company said.
Sequentially, Bajaj Auto’s net profit rose 3% while operating profit grew 5%. Revenue from operations registered a growth of 5% as total volume during improved by 3%.
The company said 19,000 Triumph motorcycles in first quarter. “Volume continued to be exported to seed the product across markets (50 countries), while the domestic network now spans ~100 showrooms, with execution underway to expand to 150 in the coming months, alongside brand activation and supply augmentation,” it said.
“Action underway on leveraging the wider Bajaj 2W network for Chetak expansion (in around 500 stores by the end of the quarter), alongside a decisive product intervention through the launch of an affordable variant that blends sharp pricing, solid build and agile performance,” the company added.