Companies

Bajaj Auto says it has become the largest 2-wheeler and 3-wheeler manufacturer in terms of revenue in India

Our Bureau Mumbai | Updated on June 17, 2020

Bajaj Auto has emerged as the largest two-wheeler and three-wheeler manufacturer in India in terms of revenue, post the announcement of its corporate results for FY 2019-20, the company claimed on Wednesday.

Bajaj Auto Ltd. posted revenues of Rs 29,919 crores in FY 2019-20 with operating EBITA margins of 17.6 per cent at Rs 5,253 crores and profit before tax (PBT) of Rs6,580 crores. The company has clocked a CAGR of 10 per cent over the last decade (2010 – 2020), with revenues moving up from Rs 11,509 cr. in FY 2009-10 to Rs 29,919 cr. in FY 2019-20, it said in a statement.

Additionally, last year has seen it “achieve several milestones that have set the tone for the next phase of growth”, it added.

Bajaj Auto continued to lead Indian automobile exports, accounting for over 50 per cent of the country’s two-wheeler and three-wheeler exports with a turnover of Rs 11,845 crores, it said. In FY 2019-20, 47 per cent of Bajaj Auto’s production was exported to over 79 countries.

“While FY 2019-20 was indeed a challenging year, we are delighted to note that not only have we emerged as the overall leader in our segment, we have also put in place several initiatives that will build momentum. This achievement is testimony to our unwavering focus and relentless pursuit of our three pronged strategy – using our R&D to develop innovative products and create differentiated brands; building a global business and leveraging principles of TPM to simplify operations and deliver top class quality,” said Rakesh Sharma, Executive Director, Bajaj Auto.

Despite the uncertainties surrounding the immediate future, we are confident that our strategic path will serve our ambitions of global leadership and business success, he added.

Soumen Ray, CFO, Bajaj Auto, said that its reach in global markets, coupled with Bajaj Auto's diverse, evolving product portfolio has helped it de-risk its business as it is not “overtly reliant on any one geography or product”.

“Consequently, our revenues and profits are not dependent on any specific sets of products or geography. Our strong operating performance is a combination of our export performance, product mix and forex, which allow us several levers to protect our industry leading margins,” said Ray.

Published on June 17, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like