Tuesday, April 16, 2024
Google search engine
HomeBusinessBajaj Auto PAT rises 20% in Q2; revenue up 16% to Rs...

Bajaj Auto PAT rises 20% in Q2; revenue up 16% to Rs 10,203 crore

[ad_1]


A favourable currency movement and increase in domestic two- and three-wheeler sales bumped up net profit by 20 per cent year-on-year even as the consolidated net profit declined 15 per cent.


The company’s net profit increased to Rs 1,530 crore against Rs 1,275 crore in the year-ago quarter. Revenue from operations stood at a record Rs 10,203 core, an increase of 16 per cent over the corresponding period last year. Ebitda margins, too, advanced to 17.2 per cent from 16 per cent last year. However, the company’s consolidated profit came down 15.6 per cent to Rs 1,719 crore against Rs 2,039.86 crore.


“The second quarter was outstanding with record breaking top-line and bottom-line outcomes. As you know, there have been serious macroeconomic issues overseas and also supply chain challenges,” Rakesh Sharma, executive director at said, adding that he expected Q3 to be better than Q2 with supply chain visibility being much better. The company’s key focus in the months ahead will be volume and market share gains.


Dinesh Thapar, chief financial officer at the firm, said the company’s operating margins expanded about 100 basis points sequentially and it was better than its initial calculations.


“The rupee continues to appreciate and is over Rs 82 against the dollar, and this should really help the case for better realisation in margins,” said Thapar.


During the period, domestic volumes nearly doubled over the previous quarter across both two- and three-wheelers, which helped offset the fall in exports arising from macroeconomic headwinds in the overseas markets.


While the two-wheeler dispatches during the period rose 27 per cent year-on-year to 621,134 units, three-wheeler sales, albeit on a low base, increased 66 per cent to 73,241 units.


The macro-economic challenges in select overseas markets subdued exports billing volumes. However, the strong show in ASEAN (with Philippines registering its highest sales) and improved foreign exchange realisations (79.75 in Q2 FY23 versus 77.43 in Q1 FY23) partly alleviated the drag on turnover, the company said in a statement.


“The main story in the quarter was the restoration of ECU (electronic control unit) supplies to the industry,” said Sharma. A favourable currency movement and higher sales of premium bikes aided profitability, he added.


Close to 60 per cent of Bajaj Auto’s portfolio came from the 125cc segment. This used to be 46 per cent in FY20. This was a key driver for improved profitability, and the superior competitive position, he said.


Meanwhile, the company’s electric scooter Chetak saw its volumes grow by over 50 per cent from about 6,200 units in Q1 to over 10,000 units in Q2. It helped the company increase its presence to more than 40 cities. Bajaj is also working on expanding the EV portfolio to cover different emerging segments and geographies.

[ad_2]

Source link

RELATED ARTICLES
- Advertisment -
Google search engine

Most Popular

Recent Comments