Bajaj Auto Q1 Results Beat Estimates Net Profit Rises 18% YoY to ₹1,988 Crore

Synopsis

Bajaj Auto's Q1 FY25 results exceeded expectations with net profit of ₹1,988 crore, up 18% YoY, driven by better product mix, higher selling prices, & robust sales.

Quarter Results Highlights

a) Bajaj Auto Q1 FY25 results were impressive, surpassing analysts’ predictions. 
b)  net profit for quarter stood at ₹1,988 crore, notable increase of 18% from ₹1,665 Cr in year-ago period. 
c) Revenue from operations rose 15.7% YoY to ₹11,928 crore, compared to ₹10,310 Cr in previous year. 
d) Company sold 11,02,056 units, reflecting 7% growth YoY.
e) At operational level, Bajaj Auto's EBITDA grew 24% YoY to ₹2,415 crore, with EBITDA margin improvement of 130 basis points to 20.2%. 
f) Total expenses for quarter amounted to ₹9,703.61 crore, up from ₹8,478.96 Cr YoY.

Management Commentary   

a) Management attributed strong performance to better product mix favoring premium vehicles, leading to higher average selling prices. 
b) Company also saw healthy export growth & maintained momentum in its domestic business, registering its ninth consecutive quarter of double-digit growth.

Segment Profit Before Tax & Finance Costs

1. Automotive Segment   

a) Automotive segment achieved profit before tax & finance costs of ₹2,298.34 crore, up from ₹1,849.25 Cr in Q1 FY24.
b) This increase is attributed to improved sales volumes, better product mix, & higher average selling prices.

2. Investments Segment   

a) Investments segment reported profit of ₹333.10 crore, nearly matching previous year's profit of ₹346.89 crore.
b) This segment continues to provide steady stream of income through strategic investments.

3. Financing Segment

a) Financing segment reported loss of ₹46.87 crore, which is increase from loss of ₹25.35 Cr in previous quarter.
b) Initial losses in this segment are expected as company invests in building its financial services operations.

Industry Impact

a) Auto sector is witnessing robust demand, driven by economic recovery & increasing consumer confidence. 
b) Bajaj Auto's strong performance reflects its strategic positioning & ability to capitalize on market opportunities. stock share price saw 2% gain, trading at ₹9,878.80 on NSE.

Company Description

Bajaj Auto, headquartered in Pune, is leading manufacturer of two & three-wheelers. Known for its innovation & market leadership, company continues to expand its footprint globally, leveraging its robust product portfolio & strong brand equity.

To Summarize

Bajaj Auto's Q1 results demonstrate its resilience & strategic growth, positioning it well for future success in competitive automotive sector. Bajaj Auto's Q1 FY25 results demonstrate solid performance across its key segments, with significant growth in automotive & financing segments. Company's strategic investments continue to provide steady income, while expanding financing segment indicates promising future growth trajectory. Overall increase in capital employed reflects Bajaj Auto's ongoing efforts to strengthen its market position & enhance its product & service offerings.