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Bajaj Auto will on Tuesday announce its financial results for the first quarter of 2022-23 (Q1FY23) . The last time, in Q4FY22, the company recorded a net profit of Rs 1,468.95 crore year-on-year (YoY).
Also, as compared to Rs 1,332.07 crore in Q4FY21, the profits were up over Rs 130 crore to Rs 1,468.95 crore in Q4FY22.
The company recorded a constant rise in its net profits in FY22. In Q1 and Q2, the net profit was at Rs 1,061.18 crore and Rs 1,274.55 crore.
After rising for the first three quarters in FY22, the total revenue of the company fell in the last quarter. In Q1 and Q2, the revenue was recorded at Rs 7,386.04 crore and Rs 8,762.18 crore respectively.
The revenue peaked in the third quarter at Rs 9,021.65 crore. It then fell to Rs 7,974.84 crore in Q4FY22.
The semiconductor shortage, which began after the coronavirus pandemic two years ago, has hurt the whole auto sector. Companies have cut their production capacity because of a hike in the demand for these chips in other industries like IT.
To cope with the fall in revenue, Bajaj Auto hiked its vehicle prices, effective April 1, 2022. On July 6, the chairman of Bajaj Auto Niraj Bajaj was quoted by the Financial Express as saying, "It is difficult to predict when this supply scarcity will end. But till then, this will constrain your company’s production volumes, as it will for all other automobile manufacturers."
However, a report by Reuters on July 21 quoted the experts saying that the supply side constraints are now 'easing up'.
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First Published: Tue, July 26 2022. 06:30 IST