Bajaj Auto Q2 Results: Profit, Revenue At Record High As Pulsar, Chetak Deliver

Bajaj Auto Ltd. clocked its highest ever quarterly revenue in July-September 2024 on the back of premiumisation and electrification.

Standalone net profit of the Pulsar-maker rose 9% year-on-year to Rs 2,005 crore in the three months ended Sept 30., on the back of revenue that surged 22% to Rs 13,127 crore, according to an exchange filing on Wednesday. Analysts polled by Bloomberg had estimated the topline at Rs 13,253 crore and the bottomline at Rs 2,201 crore.

• Revenue up 22% YoY at Rs 13,127 crore (Estimate: Rs 13,253 crore)

• Ebitda up 24% YoY at Rs 2,652 crore (Estimate: Rs 2,689 crore)

• Ebitda margin up 40 basis points YoY at 20.02% (Estimate: 20.30%)

• Net profit up 9% YoY at Rs 2,005 crore (Estimate: Rs 2,201 crore)

One basis point is one hundredth of a percentage point.

Bajaj Auto has now clocked double-digit revenue growth for 10 straight quarters, including its previous highest revenue of Rs 12,165.3 crore in October-December 2024. 

The fiscal second quarter was record-setting on multiple metrics.

The operational profitability—measured as earnings before interest, tax, depreciation and amortisation—was at its highest ever. The company has clocked EBITDA margin of over 20% for four straight quarters now, despite an EV overhang.

The net profit too was at a record high despite a one-time exceptional item. The company made a deferred tax provision of Rs 211 crore to offset the impact of the withdrawal of indexation and change in tax rate announced in Union Budget 2024-25.

As on Sept. 30, Bajaj Auto had cash reserves of about Rs 16,400 crore, after Rs 2,200 crore in dividend payout and Rs 1,200 crore earmarked for capital expenditure.

The record-setting quarterly results came on the back of outsized sales that the Pune-based automaker clocked in the second quarter.

In the July-September period, Bajaj Auto's two-wheeler sales—including exports—rose 17.19% year-on-year to 10,33,208 units as against 8,81,583 units in the year-ago period, according to data on the company's website. The company's VAHAN market share—calculated on the basis of vehicle registrations in a given month—stood at 11.76% as on Sept. 30.

The Pulsar brand continued to deliver on “premiumisation”, while accounting for more than half of Bajaj Auto’s quarterly sales. Triumph motorcycles in India grew 50% quarter- on-quarter to 10,000 units sold from over 100 dealerships. 

The newly launched Freedom 125—the world’s first CNG motorcycle—has clocked 30,000 units in less than three months. The company now plans to retail the motorcycle from 350 dealerships by the end of 2024.

Exports are showing signs of a revival on favourable dollar realisation.

The Pulsar brand stood out here as well, as 110,000 units of those motorcycles were sold internationally in the second quarter. In all, two-wheeler exports rose 5% year-on-year to 3,96,407 units. While the Latin American business continues to grow, green shoots are now visible in Nigeria and, therefore, Africa.

Bajaj Auto’s success in the three-wheeler space is extending to electric variants, so much so that e-rickshaws are now offsetting loss in the electric two-wheeler business. In all, the company’s commercial vehicle business grew 6% year-on-year to 1,39,910 units in the second quarter of this fiscal.

Clearly, Bajaj Auto is firing on all cylinders, but what stood out was the outperformance of its battery-powered two-wheelers.

In the three months ended Sept. 30, sales of the Bajaj Chetak electric scooter more than tripled to 53,730 units as against 17,824 units in the year-ago period, according to data from Society of Manufacturers of Electric Vehicles in India. The company attributed the surge to the launch of a more affordable variant priced under Rs 1 lakh, and expansion of the sales network to more than 3,000 outlets. 

As on Sept. 30, Chetak—across its seven variants—held 21.47% market share in the electric two-wheeler space, up from 11% as on 30 June.

On Wednesday, Bajaj Auto's shares rose 0.85% to Rs 11,617.55 apiece on the BSE even as the benchmark Sensex declined by 0.39%. The quarterly results were declared after market hours.