Bajaj Auto’s Q4 Profit Falls 2% YoY to Rs 1433 Crore

  • Bajaj Auto’s net profit for Q4 FY22 Drops by 2% YoY to Rs 1,433 crore.
  • The company’s revenue from operations increased by 12% YoY to Rs 8,905 Crore
  • Bajaj Auto’s board of directors has approved a dividend of Rs 140 per share.
  • Bajaj Auto has surplus cash of Rs 17,445 crore as of March 2023.

Two-wheeler industry leader Bajaj Auto posted a standalone net profit of Rs. 1,433 crore for Q4 FY22, a 2% YoY fall. The company’s operational revenue, on the other hand, increased by 12% YoY to Rs 8,905 crore during the period of January to March. A 140 rupee dividend per share has been approved by the board of directors of Bajaj Auto.

Summary Table

Company ๐Ÿ๏ธBajaj Auto
Quarter ๐Ÿ—“๏ธJanuary-March 2023
Standalone net profit ๐Ÿ’ฐRs 1,433 crore (fell 2% YoY)
Dividend ๐Ÿ’ฐRs 140 per share
Revenue from operations ๐Ÿ’ผRs 8,905 crore (12% growth YoY)
Operating profit ๐Ÿ’ฐRs 1,718 crore (26% growth YoY)
Margins ๐Ÿ“ˆ19.3%
Domestic motorcycle sales ๐Ÿ๏ธStrong, led by Pulsar and Platina 110 ABS
Three-wheeler sales ๐Ÿ›บCrossed 100,000 units milestone for the first time since the pandemic
Surplus cash ๐Ÿ’ฐRs 17,445 crore as of March 2023
Source: Bajaj Auto

Revenue Growth and Margins

The consistent momentum in the domestic business was the primary driver of the double-digit revenue growth. The company claims that improved foreign exchange realisation, prudent pricing, and a richer product mix all contributed to offsetting the decline in overall volumes brought on by slow exports. The operational profit for the reporting quarter for Bajaj Auto increased by 26% to Rs 1,718 crore from Rs 1,365 crore a year earlier. In the meantime, margins increased to 19.3% in the March quarter.

Domestic Sales Results

Bajaj Auto’s domestic motorcycle sales kept up their solid performance, helped by the Pulsar Models strong results and a further scaling-up of Platina 110 ABS volumes. For the first time since the epidemic, three-wheeler sales exceeded the 100,000 unit mark, demonstrating Bajaj’s robust recovery to pre-Covid levels.

Export Efficiency

While exports progressively declined as a result of the weakening macroeconomic conditions in foreign markets, Bajaj Auto said that it continuously watched the situation and took prompt action to preserve volumes. By maintaining its competitiveness, this made sure that the market share as a whole remained stable.

Cash and Investments in Excess

As of March 2023, Bajaj Auto had excess cash totaling Rs 17,445 crore. “The consistent robust cash generation fuelled ongoing competitive investments, capex of Rs 1000 crore (including Chetak Technology), and a share buyback,” the statement read.

Bajaj Auto shares increased 0.23% on Tuesday, closing at Rs 4,342 on the NSE.