Bajaj Auto Q3 profit soars 23% to record high; margins hit 2-year high

Bajaj Auto Q3 profit soars 23% to record high; margins hit 2-year high

MUMBAI: Bajaj Auto reported a stellar set of earnings for the December quarter on Thursday, as its net profit surged 23 per cent year-on-year to a record high of Rs. 1,556.3 crore, and its revenues rose 17 per cent to Rs 8,910 crore.

The company was expected to report a net profit of Rs. 1,412 crore and revenues of Rs. 8,963 crore, according to an poll.

The company reported a strong operating performance for the three-month period ended December 31 as its earnings before interest, tax, depreciation and amortisation (EBITDA) rose 25 per cent to Rs. 1,764 crore. The two-wheeler maker’s operating margin for the quarter came in at 19.8 per cent — the highest in eight quarters.

The 140 basis points year-on-year improvement in margin was led by better operating leverage and product mix for the company, Bajaj Auto said in its earnings statement.

While the domestic business continued on the recovery path, Bajaj Auto’s export business did exceedingly well in the quarter. Export volumes rose 22 per cent on year to 6,87,111 units, while they were down 3 per cent in the domestic market.

In the domestic motorcycle market, the company gained market share as its market share stood at 18.6 per cent at the end of Q3 as against 17.5 per cent in the previous quarter.

Shares of the company surged after the earnings announcement, and were trading 2.6 per cent higher at Rs 3,738.

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