Bajaj Auto reported a consolidated net profit of ₹1,170 crore in the first quarter ended June 30, compared to ₹395 crore in the corresponding quarter last year. The auto company reported a profit of ₹1,332 crore in the fourth quarter of FY21.

The company’s total revenue from operations stood at ₹7,386 crore in Q1 against ₹3,079 crore in Q1 FY21.

Covid impact

Soumen Ray, CFO, Bajaj Auto Ltd, said the lockdowns have been less severe in the second wave in comparison to the first wave. Exports remained neutral to such effects as the entire world was not going through severe effects of the pandemic at the same time.

Ray also maintained that since the severity of impact was very different for the first quarters of FY21 and FY22, the performance of the two quarters is not strictly comparable.

EBITDA margin for Q1FY22 was 15.6 per cent against 18.1 per cent in Q4FY21, largely impacted due to the increase in the cost of raw material. However, this was partially offset by higher US dollar realisation and improved mix.

Bajaj Auto also said it will set up a wholly-owned subsidiary to tap growth opportunities in the electric and hybrid two-wheeler, three-wheeler and light four-wheeler categories.

Electric platform

Speaking at the annual general meeting), Rakesh Sharma, Executive Director, Bajaj Auto, said, “We are evaluating the full spectrum of possibilities in micro-mobility to performance motorcycles on the electric platform. Today, the board of directors has approved the formation of a 100 percent subsidiary purely to build the electric vehicle (EV) business. We view the future of the development of EV industry as an opportunity and not as a threat.”

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