The country's largest two-wheeler brand by market capitalisation Bajaj Auto on Wednesday reported a net profit of Rs 2,005 crore for the quarter that ended in September (Q2FY25), a growth of over 9% year-on-year. The profit in the recently concluded quarter was impacted as the company had to make an additional provision of Rs 211 crore to account for the cumulative one-time impact on Deferred Tax on Investment Income, due to the withdrawal of indexation and change in tax rate in the Finance Act, 2024.
Bajaj Auto’s revenue increased by 21.8% year-on-year to Rs 13,127.5 crore on the back of double digit growth in motorcycle sales and better realization.
The company’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased to Rs 2,653 crore, its best ever in a single quarter and a growth of 24.4% when compared to the same quarter last year. Its EBITDA margin was slightly more than 20%.
During the reported quarter, Bajaj Auto's total sales volume grew by 16% year-on-year and 11% quarter-on-quarter. The company's total sales stood at 12,21,504 units in the second quarter as against 10,53,953 units in the year-ago period. Domestic two-wheeler sales grew by an impressive 26% y-o-y to 636,801 units while exports here grew by 5% y-o-y to 396,407 units.
Bajaj Auto said that it sold 100,000 electric vehicles during the quarter and its green portfolio, comprising electric and CNG vehicles across both the 2W and 3W portfolio, now contributes a significant 40% of total domestic revenues.
For Bajaj, export revenue grew in double digits, on better USD/INR realisation, a richer mix and another record quarter for LATAM. The commercial vehicles segment did a volume of about 140,000 units, another all-time high on volumes and resultant revenue.
The company also said its board has approved additional investment of up to $10 million in Bajaj Brazil, a wholly-owned subsidiary of the company. “The Board has approved a capital infusion of up to USD 10 million (equivalent to Rs. 84 crores at an assumed exchange rate of 1 USD = Rs. 84) to be invested in a phased manner based on business requirements / plans,” said the company in a regulatory filing.
The size of the company in Brazil based on the trailing four quarters that ended in September 2024 was Rs 250 crores arising from the sale of 9,000 motorcycles under the Dominar brand.