Bajaj Auto Q3 Results

Net Profit Grows by 3%, Revenue Rises 6% YoY on Strong Exports

Bajaj Auto Ltd, a leading Pune-based two-wheeler manufacturer, posted a 3.3% year-on-year (YoY) increase in consolidated net profit for Q3FY25, reaching ₹2,108.7 crore. This marks an improvement from the ₹2,042 crore profit reported in the same period last year. The company’s stock saw a modest rise of 0.49%, closing at ₹8,421.80 per share on the BSE.

Revenue and Domestic Sales Performance

The company’s consolidated revenue from operations for the December quarter rose by 5.7% YoY to ₹12,807 crore, compared to ₹12,114 crore in Q3FY24. However, domestic sales witnessed a decline, with total sales dropping 9% to 7,07,105 units from 7,78,281 units in the corresponding quarter last year. This decline was attributed to lower demand across segments, including entry-level models and KTM premium bikes.

Export Growth Drives Strong Performance

In contrast, exports experienced a robust 22% YoY growth, climbing to 5,17,367 units from 4,22,716 units in Q3FY24. This sharp increase boosted exports’ share in Bajaj Auto’s overall sales mix to 42.3%, up from 35.2% a year earlier. The company credited this export growth for offsetting its weak domestic performance.

Financial Position and Margins

Bajaj Auto maintained a strong balance sheet, boasting surplus funds of over ₹15,001 crore. This is after deploying nearly ₹1,600 crore to its financing subsidiary and undertaking a capital expenditure of ₹450 crore during the fiscal year so far.

Despite the revenue growth, EBITDA margins held steady at 20.2%, remaining flat compared to the previous year.

Industry Insights and Competition

While Bajaj Auto’s domestic performance lagged, its export strength has proven to be a key growth driver. Meanwhile, rival TVS Motor Company faced challenges with slower two-wheeler sales growth, resulting in a Q3 profit that fell short of market estimates. However, TVS managed to impress investors with improvements in its key profit margin metric, pushing its stock up by 5%.

Bajaj Auto’s contrasting domestic and export performances underline the company’s reliance on global markets to maintain growth momentum amid a challenging domestic landscape.