Bajaj Auto Q3 profit rises 37%, beats estimates

Bajaj Auto, the country's second largest two-wheeler maker, on Wednesday reported better than anticipated third-quarter profit on Wednesday, helped by strong domestic demand for its motorcycles and three-wheelers.

The company reported net profit of Rs 2,042 crore for third quarter of current financial year, up 37 per cent from Rs 1,491 crore in the same period last financial year. Analysts on an average estimated the company to report net profit of Rs 1,947 crore, according to LSEG data.

Its revenue from operations rose 30 per cent to Rs 12,113.51 crore as against Rs 9,315 crore in the same quarter last year.

The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) also known as operating profit rose 37 per cent to Rs 2,430 crore and its operating profit margin came in at 20.1 per cent, up 100 basis points.

The stellar performance was attributed to the remarkable success of motorcycles, particularly in the 125cc and above category. The flagship model, 'Pulsar,' set a new industry benchmark, achieving its highest quarterly volume of 400,000 units. This success is underlined by the 'Pulsarmania' event held across 100+ cities, effectively showcasing the brand's strong proposition, Bajaj Auto said.

The company reported near double-digit YoY revenue growth in exports, driven by a strategic mix and favourable dollar realisation. While maintaining overall market share, the quarter witnessed a slight uptick in billing volumes. Notably, the expansion into Latin America (LA), Asia, and premium bike exports has successfully offset challenges in Africa, particularly Nigeria.

Bajaj Auto shares ended 1.7 per cent higher at Rs 7,211 ahead of its earnings announcement.