Bajaj Auto on Wednesday reported a 10% year-on-year growth in net profit for the three months to March at `1,469 crore even as revenues from operations declined 7% y-o-y to `7,975 crore. The better-than-expected numbers were the result of a better product mix and good realisations.
The Bajaj Auto stock closed at `3,898.60 apiece on the NSE on Wednesday, slightly above Tuesday’s close.
The two-wheeler manufacturer reported an operating profit margin of 17.5% for Q4FY22, down from 18.1% in Q4FY21, a compression of 60 basis points. However, the margins were much better than the 15.6% registered in Q3FY22.
The sequential expansion in margins has been attributed to better realisations, an improved sales mix and a favourable currency impact. The average selling price (ASP) of Bajaj Auto’s vehicles went up by 10% to `79,129 in Q4FY22 from `71,925 in Q4FY21. In the December quarter, the ASP was `74,537.
The company’s Ebitda (earnings before interest tax, depreciation and amortisation) came in at `1,396 crore, a fall of 10% y-o-y.
Bajaj Auto’s sales volumes dropped 17% to 976,651 units during the March quarter as severe supply chain challenges hit production of both motorcycles and commercial vehicles. Demand for two-wheelers has been weak due to high ownership costs and rising fuel costs.
The company’s market share in the domestic motorcycle market stood at 18.2% for FY22, while in the CV market the share was 62%, driven by a good growth in sales.
Exports at over $2 billion contributed 52% to net sales, the company said, adding that the international business had recorded its highest-ever sales of 2.5 million units during FY22.
Bajaj Auto has ended FY22 with a 19% y-o-y growth in revenues from operations of `33,145 crore. The profit after tax rose 10% y-o-y to `5,015 crore, while Ebitda increased by 6% to `5,389 crore. The total volumes rose by 8% to 4.3 million units, though the volumes for two-wheelers slipped 30% in the home market.