Mumbai: Two- and three-wheeler major on Wednesday reported a sharp increase in revenues for the September quarter, helping it improve its net profit despite pressure on margins from high input costs.
The company also announced its plans to set up a captive non-bank finance company (NBFC) Bajaj Auto Consumer Finance to fund the retail sales of its products.
The maker of Pulsar and Discover motorcycles reported a standalone profit of Rs 1,275 crore, up 12 per cent year-on-year. Revenue for the quarter grew by 22 per cent year-on-year to Rs 8,762.
The growth in the topline was partly aided by an increase in the share of exports and partly by an increase in the price of its products. Realisations per unit improved 13 per cent year-on-year to Rs 76,563 per unit.
Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 11 per cent to Rs 1,401 crore but EBITDA margin narrowed by 169 basis points to 16 per cent. One basis point is 0.01 per cent.
The cost pressure on EBITDA margins was absorbed in part by the sales mix moving in favour of exports. Exports during the quarter improved by 28 per cent on-year compared to a 7 per cent dip in domestic sales. The company sold 1.14 million vehicles.
The stock of Bajaj Auto closed 0.38 per cent lower at Rs 3,777.45 per share on the BSE on Wednesday. The earnings were announced post-market hours.
The company also made a one-time gain of Rs 501 crore during the quarter improving its consolidated bottom line by 71 per cent to Rs 2,040 crore. This gain was made as part of a share swap agreement with its partner KTM that saw Bajaj get a stake in KTM’s parent Pierer Bajaj AG.
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