Bajaj Auto Q2 net profit skids 31% to ₹1,385 crore

Bajaj Auto reported a 31.4 per cent drop in consolidated net profit to ₹1,385 crore in the quarter ended September 30, 2024, as compared to ₹2,020 crore reported in the same quarter last year. The company said additional provision of ₹211 crore was made 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

Sequentially, profit dipped 28.6 per cent during the quarter, compared to the June quarter, when it reported a profit of ₹1,941 crore.

• Also read: Bajaj Auto announces festive season discounts on Pulsar range

Total revenue from operations grew by 22.2 per cent to ₹13,247 crore in the period, from ₹10,838 crore posted in the same quarter last year, and the June quarter witnessed an 11.02 per cent increase of ₹11,932 crore.

The company, the first to launch a CNG bike globally, has sold over 10,000 units. Production capacity is to be ramped up to 30,000 units from 20,000 in November, and to 40,000 units in January 2025. The company will also expand the production capacity of the electric Chetak two-wheeler.

• Also read: Bajaj Auto sells over 6,000 units of India’s first CNG motorcycle

“The quarter has been strong, driven by domestic sales, rising exports, and the spare parts business. With Freedom 125, our objective is to saturate the market and increase supply. We are yet to begin supply of the third variant. We have the platform and can expand on it with other CNG products. However, for now, our focus is on Freedom 125. We will further expand the Chetak range after Diwali,” Rakesh Sharma, Executive Director, told businessline.

Bajaj Auto will invest $10 million in its Brazil subsidiary Bajaj Do Brasil Comercio De Motocicletas, which was incorporated on March 31, 2022. The additional capital will be used to increase capacity and expand the business in Brazil.

Further, the company’s electric and CNG vehicles in its two- and three-wheeler portfolio contribute to 40 per cent of the total domestic revenues.

Festive season dip

The festive season has failed to meet expectations and the response, overall, has been muted. “The South and East markets have declined, while Uttar Pradesh and a few North markets have done well. Growth of between 6 to 8 per cent was anticipated for Dusshera, but it is only between 1 to 2 per cent of the same time last year. The industry will see 3 to 5 per cent growth this festive season,” he added.

Exports

Exports grew, with the Pulsar continuing to be a popular product across markets, and selling over 1,10,000 units.

“The improvement in exports is 10 per cent every quarter, and this momentum will continue. Latin America has become a larger market than Africa. However, Africa continues to be volatile. We are expecting Latin America to continue driving export growth,” added Sharma.