25-Jan-2024
2 mins read
Indian two-wheeler giant Automobile company Bajaj Auto released the third quarter earnings on January 24, 2024. It reported a standalone net profit of Rs 2,042 crore, with a jump of 37% on a Year-on-Year basis.
The company’s net profit surpassed the Rs 2,000 crore milestone for the first time in the quarter, which is suitable for its long-term investors.
Moreover, the Bajaj Auto Revenue from operations jumped 30.1% to Rs 12,114 crore compared to Rs 9,315 crore in the corresponding period last year. The revenue growth accelerated by the domestic business during the previous year’s festive season.
Bajaj Auto’s Share Price Update
On January 24, 2024, Bajaj Auto’s share price witnessed a minor gain of 1.65% and closed at Rs 7,212.85. However, today’s opening in Bajaj Auto shares is bullish and trading in green. It indicates that the stock price has adjusted the Q3 results.
Company’s EBITDA Growth Update
The company’s operating performance is good. The earnings before interest, tax, depreciation and amortization in the December quarter increased by 37% to Rs 2,430 crore compared to Rs1,776 crore in the year-ago period.
Bajaj Auto reported the highest quarterly EBITDA and the EBITDA margin stood at 20.1% in the December quarter compared to the corresponding quarter in the previous fiscal year.
Bajaj Auto’s Domestic Business
Bajaj Auto’s Domestic business also delivered a revenue growth of nearly 50% annually. The double-digit YoY growth across all the segments, particularly in 125+ CC motorcycles, has boosted the revenue growth. Slowly, the sales of commercial and electric vehicles are on the rise, which may fuel the increase in the coming quarters.
125+ CC Segment Leads the Revenue Growth
The auto exports also recorded a double-digit YoY revenue growth. While the overall market share is still steady, Bajaj Auto is trying to capture a more significant share. Domestic motorcycle sales continue to grow 2X, and the 125+ CC segment is leading the growth.
The quarterly volume is at its highest of 4,00,000 units; Pulsar bikes continued to lead the competitive growth. The commercial vehicles segment also grows and sells nearly 40,000 units per month.