Bajaj Auto Q3 Results: Net profit jumps 37% to Rs 2,042 crore driven by volume-led growth in domestic business

Bajaj Auto Q3 FY24 results: Bajaj Auto said growth in its domestic business took its quarterly revenue, EBITDA as well as net profit to record highs.

Bajaj Auto staged a strong quarterly performance boosted by festive season demand. | File photo | Image credit: Reuters

Bajaj Auto on Wednesday reported a 36.9 per cent year-on-year jump in standalone net profit to a record Rs 2,041.9 crore for the October-December period, driven by volume-led growth in its domestic business owing to a robust festive season. The quarterly net profit was in line with analysts' expectations.

Its quarterly revenue grew 30 per cent to Rs 12,113.5 crore, according to a regulatory filing. The company said the revenue growth was led by acceleration in the domestic business on the back of sharp execution and impactful activation during the festive season, which cushioned the relatively subdued albeit recovering export sales amidst continued challenges in overseas markets.

The auto major's quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) expanded 37 per cent to a record Rs 2,430 crore, according to the company.

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According to Zee Business research, the auto maker's quarterly net profit was estimated at Rs 2,025 crore, revenue at Rs 12,050 crore and EBITDA at Rs 2,335 crore.

Bajaj Auto's margin, a key measure of profitability, increased by 100 basis points on a year-on-year basis to 20.1 per cent, aided by better realisations, dynamic cost management and operating leverage, which more than absorbed the drag from competitive investments on a growing scale on electric scooters, it said.

Zee Business analysts had estimated the company's margin for the fiscal third quarter to stand at 19.4 per cent.

While the company's total sales volumes increased 21.7 per cent to 11,96,974 units, its domestic revenue grew nearly 50 per cent. Zee Business analysts had pegged the motorcycle maker's volumes to increase 22.1 per cent to 12 lakh units.

Bajaj Auto shares ended 1.7 per cent higher at Rs 7,211.4 apiece on BSE ahead of the earnings announcement.

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