Mumbai: Bajaj Auto Ltd on Tuesday reported an 18% year-on-year increase in its consolidated net profit for Q1 FY25, reaching Rs 1,941.79 crore, driven by steady demand, strong two-wheeler sales, and higher realizations.
The Pune-based automaker saw its revenue for the April-June quarter rise by 16% year-on-year to Rs 11,932 crore, boosted by robust vehicle sales and record spares revenue, resulting in a higher average selling price (ASP).
Under the leadership of Rajiv Bajaj, the company sold 11,02,056 units of vehicles in the June 2024 quarter, marking a 7% growth compared to the 10,27,407 units sold in the same quarter the previous year.
“Domestic business maintained its momentum and resilience, registering its ninth successive quarter of double-digit growth o Sustained broad-based growth across the motorcycles, commercial vehicles and electric scooters portfolio. The electric portfolio (e2W, e3W) comprised 14 percent of domestic revenues this quarter, which is a reflection of the steady work on building this,” the company said in a release.
In Q1 FY24, the company's earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 24% to Rs 2,415 crore from Rs 1,954 crore, with the operating margin improving by 130 basis points (bps) to 20.2% from 19% year-on-year.
The company said this improvement was due to better realizations and cost reductions, which more than compensated for the impact of the growing electric two-wheeler (e2W) business.
The company experienced robust export growth, with revenue increasing in double digits year-on-year. The automaker reported that export revenue grew by double digits year-on-year, with LATAM achieving its highest-ever figures and an increase in Asia helping to mitigate challenges in Africa.
“Consistent growth and market share gains over time has led to LATAM emerging as the largest region this quarter; notably, the first owned overseas assembling facility was commissioned in Manaus, Brazil with an annual capacity of 20,000 units (single shift basis),” added Bajaj Auto in a release.
Further, the company said its domestic business too maintained momentum registering ninth successive quarter of double-digit growth.
“This portfolio has been further bolstered by the recent launch of Pulsar NS400Z, the most powerful and ‘definitely daring’ leader of the Pulsar line-up," Bajaj Auto said.
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