Bajaj Auto, India's most valuable two-wheeler maker, reported a 3% year-on-year (YoY) increase in standalone net profit to Rs 2,109 crore for the December quarter, driven by buoyant electric bike sales and strong exports. In the third quarter of the financial year 2024-25 (FY25), Bajaj Auto's revenue jumped 6% YoY to Rs 12,807 crore, with the company's electric vehicles portfolio making up about 45% of its revenue.
Profit before tax (PBT) stood at Rs 2,801.45 crore in Q3 FY25, registering a 4.69% growth from Rs 2,675.76 crore posted in Q3 FY24. Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDA) rose 6.21% YoY to Rs 2,581 crore for the quarter ended. The EBITDA margin was 20.2% in Q3 FY25, up 10 basis points YoY.
"Margins for the quarter were supported by currency tailwinds on export sales, amidst stable commodity prices and scaling up of the less profitable EV segment," ICICI Direct Research said. It maintained a "Neutral" stance for two-wheeler stocks.
Bajaj Auto's shares were trading over 3.15% up at Rs 8,656.55 per share.
Bajaj Captures EV Two-Wheeler Space
The two-wheeler giant reported its quarterly retail sales reached their highest-ever levels. Chetak sales more than doubled during the quarter, with Q3FY25 market share pegged at 22%, up from 13% in the same period of FY24. Electric vehicles (combining two-wheelers and three-wheelers) now form about 22% of its domestic revenues, with the green portfolio (including CNG) contributing about 44% of domestic revenues.
Bajaj Auto is also stepping up new launches, with 9 new models set to be unveiled between December 2024 and March 2025, including an e-rickshaw.
ICICI Direct noted that the company's electric vehicles business delivered a marginally positive EBITDA, supported by cost reduction efforts and scaling up the highly profitable electric three-wheeler portfolio.
Exports Offset Domestic Sales Decline
Even amid high demand for its electric scooter, Bajaj Auto saw its domestic volume sales decline by 9% to 707,105 units, compared with 778,281 units sold in Q3FY24. However, the firm expects domestic two-wheeler industry volumes to grow 6-8% in FY25E post-festive season normalization.
Meanwhile, the firm's export revenue grew by 16% in Q3FY25 to Rs 4,500 crore. Export volumes rose by 22% YoY, led by strong LATAM sales and a steady African market. The company expects about 20% growth in export volumes during the ongoing quarter.
