Bajaj Auto Q4 results: Standalone PAT rises 35% to Rs 1,936 crore
Bajaj Auto records highest ever PAT, revenue in FY24
 "Bajaj Auto Q4 results: Standalone PAT rises 35% to Rs 1,936 crore")
Bajaj Auto on Thursday posted a 35 per cent year-on-year (Y-o-Y) rise in standalone profit after tax (PAT) to Rs 1,936 crore, riding on a 29 per cent growth in revenue from operations at Rs 11,485 crore in the fourth quarter of Financial Year 2023-24 (Q4 FY24).
The two- and three-wheeler manufacturer’s revenue growth was led by domestic business and aided by steady exports despite challenges in markets abroad. Sequentially, revenue and PAT were down by 5 per cent.
The auto major reported a consolidated net profit of Rs 2011.43 crore for Q4FY24, up 18 percent, while its revenue grew by 30 percent to Rs 11249.8 crore. The Board has recommended a dividend of Rs. 80 per share (800 percent) of face value of Rs 10 each on equity shares for the financial year ended 31 March 2024.
Bajaj Auto’s stock ended the day’s trade on BSE up 1.1 percent at Rs 9017.75 apiece. The company’s results were in line with Bloomberg estimates of a 29.6 per cent jump in adjusted net income Y-o-Y and 28.7 per cent growth in revenue from operations.
In Q4 FY24, Bajaj Auto’s motorcycles gained a domestic market share in the above 125cc segment. It sold more than 100,000 commercial vehicles (three-wheelers). Electric three-wheelers sales improved too as the company expanded its network to 60 cities. The Chetak electric scooter clocked its highest quarterly sales in Q4 FY24, as Triumph motorcycle volumes expanded to 18,800 units. Around 70 per cent of Triumph sales went as seed products – a marketing term for promoting an item – in overseas markets. Export revenues grew 20 per cent Y-o-Y.
Rakesh Sharma, executive director of Bajaj Auto, said the company sold 39,000-40,000 Chetak scooters in Q4 FY24: More than the entire FY23. Sharma did not share FY24 sales numbers for the Chetak.
Bajaj aims to have 600 Chetak outlets in four-five months, expanding from 200 now. The sale of high-speed models of the scooter grew by almost 28 per cent in FY24 and business is expected to be better in FY25 after the withdrawal of government subsidy, said Sharma.
“We will be launching a new product under the Chetak umbrella in May and we are investing in Chetak Technologies for more cutting edge technology. New models from the Chetak stable would be more for the masses,” he said without divulging price points.
Bajaj Auto is exploring new markets in Europe and it is considering re-entering the Egypt market with Qute (auto-taxi). It stopped exporting to Egypt in April 2022.
In FY24, the company had its highest ever revenue and PAT. For the full year, standalone revenue from operations was up 23 per cent at Rs 44685 crore. PAT went up 33 per cent to hit Rs 7,479 crore. Ebitda, or earnings before interest, taxes, depreciation, and amortization, was Rs 8,285 crore, growing 35 per cent Y-o-Y the Ebitda and the company’s highest.
In FY24, the domestic business achieved its largest revenue due to volume growth across all businesses. Bajaj Auto said it almost quadrupled its electric vehicles sales in the year. Exports in the second half of the year were flat as the company navigated rough macroeconomic conditions in Africa and Asia. Around 42,000 Triumph motorcycles were delivered in FY24. Three-wheeler sales grew by 54 per cent in the domestic market to 464,138 units.
The Board of Directors of Bajaj Auto on Thursday approved additional fund infusion in Bajaj Auto Credit Ltd (BACL), a wholly owned subsidiary of the company. In a notification on BSE the company said that additional capital investment of Rs 2250 crore will be done in a phased manner, in addition to the existing Rs. 600 crores approved earlier. The Board granted a revolving Line of Credit to BACL up to an amount of Rs. 2,250 crores as standby liquidity support. The interest rate will be at an arm’s length basis prevailing at the time of any drawdown.
Company to position CNG bike towards value-conscious client
Bajaj Auto will position its upcoming CNG bike towards the value-conscious customer, a senior company official said. A launch is expected in the April-June quarter of 2024-25 and the company will start with the Maharashtra market, Rakesh Sharma, ED, Bajaj Auto said. Meanwhile, Iran-Israel escalation is making ‘westwards logistics’ difficult, Sharma admitted. There is an impact on shipping and freight rates that would, in turn, impact the delivery costs.