Driven by the growth in the premium motorcycle segment, Bajaj Auto’s net profit surged to ₹1,941 crore, an 18 per cent increase in the quarter that ended on June 30, as compared to ₹1,644 crore during the same quarter last year.
The Pune-based company witnessed a 3.44 per cent dip in its profit during the quarter as compared to the March quarter when it reported a profit of ₹2,011 crore.
The company’s total revenue from operations grew by 15.7 per cent to ₹11,932 crore during the period from ₹10,311 crore posted in the same quarter last year and the previous quarter witnessed a 3.27 per cent increase of ₹11,554 crore.
The company that launched the world’s first CNG bike has received 4,200 bookings and over 50,000 registrations for the test drive of the vehicle. The maximum bookings of the CNG bike Freedom 125 are from Maharashtra and Gujarat.
“The top three platforms for growth for the company this year are the Freedom 125, electric Chetak and the Brazil plant. There is a mixed improvement with a focus on selling a higher-value portfolio in the domestic market. In the top half of the segment, our market share is 26 per cent and it is driven by the Pulsar portfolio. We have just started the manufacturing of the world’s first CNG bike and have got a few of them retailed. The response to the CNG bike is outstanding and not seen in recent times for a product,” said Rakesh Sharma, Executive Director of Bajaj Auto.
Electric Chetak sales
Electric Chetak comprises the company’s 14 per cent of the overall revenue. The company plans to expand the Chetak distribution network to 1,000 stores nationwide by the year’s end. Further, the company stated it is expecting to breach the 2018-2019 growth mark of the two-wheeler market growth in Q1FY26.
The company stated that it had a surplus cash of ₹16,764 crore, which would provide them with sufficient fuel for future growth investments.
Exports
Bajaj Auto witnessed a revival of exports during the quarter, with recovery in Africa, the Middle East, Bangladesh, and Argentina markets. The company’s new Brazil plant will produce 1,500 two-wheeler units every month and is working on expanding the plant to double the capacity.
“In the international market, the focus is on recovery markets including Africa and the Middle East. Dominar and Pulsar are doing well. Nigeria continues to be impacted but overall there is low profit growth. With the Brazil plant, we want to ramp up manufacturing, double capacity and expand the distribution network. We are present in 30 stores in Brazil and are hoping to be in 65 stores by the end of the year,” said Rakesh Sharma to businessline.