Bajaj Auto announced a standalone net profit of ₹1,836 crore for the quarter ending September this financial year, a 20 per cent increase from ₹1,530 crore reported during the corresponding quarter of the previous year.

Underpinned by double-digit volume growth, with the sustained buoyancy on the domestic front cushioning the weak, albeit improving exports performance, the revenue from operations increased 6 per cent year-on-year (y-o-y), reaching ₹10,777 crore (₹10,203 crore).

At ₹2,133 crore, quarterly EBITDA surpassed the ₹2,000-crore milestone for the first time, a 21 per cent y-o-y growth.

Domestic biz buoyant

The company said that buoyant domestic business registered a new peak, on the back of six successive quarters of double-digit y-o-y growth. Sustained growth on 125 cc+ motorcycles and further acceleration of three-wheeler sales delivered its highest-ever quarter, it added.

“Exports stay on course to making a gradual recovery, amidst volatile market conditions – volumes up 8 per cent sequentially. Market share holds steady with volume uptick in Africa, LATAM and SAME allowing for a slight build back of inventory in select markets; actions continue unabated to navigate currency constraints and challenging macros in overseas markets,” the company added.

In motorcycles, consistent focus on premiumisation enabled solid market leading growth (6x y-o-y vs. rest of market in 125cc+). The company said that it achieved a landmark quarter for three-wheelers as it steps up its volume trajectory to clock historic-high sales (Q1: 99,000, Q2: 1.32 lakh units).

The statement issued by the company added that Chetak expansion was making steady progress with exit market share more than double to 11 per cent (5 per cent).

Strategy for future

The company is focused on brand activation, network extension (now in 120 cities vs 90 in previous quarter), augmenting supply chain capability and product interventions all in the pipeline to further scale up business and bolster competitive play.

“Deliveries of Triumph Speed 400 initiated in August met with very enthusing customer feedback (>8,000 units in Q2). Strong cash generation sustained – over ₹3,600 crore of free cash flow added in the first half, 1.6x higher than H1 FY23,” the company added.

The company maintains a robust balance sheet with surplus funds at ₹17,326 crore as on September 30 2023, after dividend distribution of about ₹4,000 crore during the quarter.