Bajaj Auto Q2 Results FY2024, Net profit at Rs.1836 crores

On 18th October 2023, Bajaj Auto announced its quarterly results.

Key Highlights:

- Revenue from Operations hits a new record of Rs. 10,777 crores, an increase of 6% YoY. Powered by double-digit volume growth, the ongoing domestic upswing masked the dismal.
- With an increase of 21% YoY, quarterly EBITDA breaks the Rs. 2,000 crore mark for the first time at Rs. 2,133 crores. Margin at 19.8%, up +260 bps YoY, driven by stronger realization and a richer product mix that more than made up for the negative from expenditures in expanding electric scooters.
- PBT increased by 19% to Rs.2400 crores in Q2 FY2024 from Rs.2014 crores in Q2 FY2023
- PAT increased by 20% to Rs.1836 crores from Rs.1530 crores in the Q2FY2023.

Business Highlights:

- On the strength of six consecutive quarters of double-digit YoY growth, buoyant domestic business reaches a new height. Underpinned by a strong overall performance, particularly the continued competitive growth on bikes with 125 cc or more and the continued acceleration of three-wheeler sales, which produced the quarter's biggest sales volume ever. 
- Despite turbulent market conditions, exports remain on track to gradually recover. Volumes are up 8% sequentially. Market share remains stable, with volume growth in Africa, LATAM, and SAME allowing for a little build-back of inventory in some regions; steps to handle currency limits and difficult macroeconomic conditions in international markets continue unabated.
- In the 125cc+ market, a persistent focus on premiumization has allowed for market-leading growth of 6x YoY. released the Pulsar N150, India's preferred 150cc in a brand-new shape with aggressive appearance, industry-leading features, exceptional on-road performance, and an alluring pricing point, heralding it as a promising addition to the Pulsar family.
 - A significant quarter for three-wheelers as they reach record-breaking high sales in the first and second quarters (01: 99K, 02: 132K units). The e3W launch received a positive response, which has prompted the advancement of rollout plans. Seven cities are now covered, and future expansion is under way. There is also potential to add additional volumes from limited areas that are now accessible due to the electric offering.
- Chetak's expansion is moving forward steadily; its exit market share has increased to 11% from 5% at the same time last year.  To further scale up business and strengthen competitive play, targeted activities on brand engagement, network extension (currently in 120 cities vs. 90 in the previous quarter), enhancing supply chain competence, and product interventions are all in the works.