Bajaj Auto reported a 5.6% increase in second-quarter sales on Wednesday, as price increases offset sluggish demand for its bikes.
Bajaj Auto is an Indian automobile company that designs, produces, and sells two- and three-wheelers. It is the world’s third-biggest motorcycle manufacturer and the world’s largest maker of three-wheelers. With a market valuation of 1 trillion (US$13 billion) in December 2020, Bajaj Auto became the world’s most valuable two-wheeler firm.
For the three months ending September 30, the company’s overall revenue from operations increased to 107.77 billion rupees ($1.29 billion) from 102.03 billion rupees the previous year.
The flagship firm of the Bajaj Group, an Indian global conglomerate established in 1926 by Jamnalal Bajaj, is Bajaj Auto. The Bajaj Group is made up of 40 enterprises.
The revenue from operations has reached a record high of 10,777 crores.
Underpinned by double-digit volume growth, with domestic buoyancy cushioning the lacklustre, although improving, export performance. Quarterly EBITDA reaches Rs2,000 crores for the first time, representing a 21% YoY increase.
Margin was 19.8%, up +260 basis points year on year, driven by higher realisation and a more diverse product mix, which more than offset the negative from expenditures in expanding electric scooters.
Domestic business reaches a new high after six consecutive quarters of double-digit YoY growth.
Underpinned by a broad-based performance, most notably the continuous competitive growth on 125 cc+ bikes and the continued acceleration of three-wheeler sales, which provided the company’s best-ever quarter.
Exports continue to rise gradually despite unpredictable market circumstances, with volumes increasing by 8% sequentially.
Market share is stable, with volume increases in Africa, LATAM, and SAME allowing for a minor buildback of inventory in certain regions; activities in international markets continue unabated to negotiate currency limits and adverse macroeconomics.
In motorbikes, a persistent emphasis on premiumization ensures steady industry-leading growth (6x YoY vs. the rest of the 125cc+ market).
A watershed quarter for three-wheelers as it accelerates its volume trajectory to set new records (01: 99K, 02: 132K units).
Strong cash creation has been maintained, with over f3,600 crores of Free Cash Flow contributed in the first half, 1.6x more than in the first half of FY23.
Strong balance sheet, with excess money of 17,326 crores as of September 30th, 2023, after dividend payment of 4,000 crores