Bajaj Auto Q3 Results: Standalone Net Profit Rises 3% to Rs 2,109 Crore, Revenue Up 6%
Bajaj Auto has announced its financial results for the third quarter of fiscal year 2025 (Q3 FY25), reporting a 3% year-on-year increase in standalone net profit. The company's performance was driven by strong exports and a growing domestic green energy portfolio.
Financial Performance Overview
For the quarter ended December 2024, Bajaj Auto reported a standalone net profit of Rs 2,109 crore, up 3% from Rs 2,047.6 crore (adjusted for YoY comparison) in the same period last year. Revenue from operations for Q3 FY25 increased by 6% to Rs 12,807 crore, compared to the corresponding quarter of the previous financial year.
On a sequential basis, net profit rose by 5% from Rs 2,005 crore in the preceding September quarter (Q2 FY25). However, revenue declined by 2% quarter-on-quarter.
EBITDA and Margin
Operating profit, as measured by EBITDA, grew by 6% year-on-year to Rs 2,581 crore. Margins expanded by 10 basis points year-on-year to 20.2%, primarily due to favorable USD/INR realization, judicious pricing, and cost efficiencies. These factors offset the significant investments made in strategic priorities.
Sales Volume Performance
Overall sales volumes increased by 2% year-on-year to 12.24 lakh units in Q3 FY25. Export volumes were the primary growth driver, while the domestic market experienced a decline. Domestic two-wheeler sales volumes dropped by 10% year-on-year, and commercial vehicle (CV) sales declined by 3%, resulting in a 9% overall decrease in domestic volumes.
125cc+ Motorcycle Segment
In a highly competitive market, the 125cc+ motorcycle segment achieved its highest-ever quarterly retail volumes, boosted by the festive season. Despite this growth and maintaining market share in the strategically important 125cc+ segment, the overall performance for the quarter was impacted by a conscious decision to avoid deep price discounting.
Green Energy Portfolio
The domestic business was led by the green energy portfolio, which now contributes 45% of revenues. Bajaj Auto made significant strides in the electric vehicle (EV) segment, delivering another quarter of 100,000 units. The company is nearing leadership in this segment by doubling its share in electric two-wheelers and tripling its share in electric three-wheelers compared to the previous year. Notably, the EV segment moved from a loss to a marginally positive EBITDA.
Electric Three-Wheeler Segment
Electric three-wheeler volumes surged five times year-on-year, with market share expanding to a new quarterly high (three times year-on-year). This growth was supported by an extended network, expanding from 600 to over 850 touchpoints.
Chetak Electric Scooter
The Chetak electric scooter maintained strong momentum, steadily gaining customer preference. Volumes increased approximately 2.5 times year-on-year, with an exit market share of 25%, representing an 1100 basis point increase.
Export Performance
Exports continued to recover, delivering double-digit revenue growth for the fourth consecutive quarter. Two-wheeler export volumes grew by 21% year-on-year, while CV export volumes increased by 22%. Growth across Africa, Asia, and Latin America (LatAm) more than offset a significant drop in KTM exports. LatAm reported another record quarter, and Africa contributed to growth, with volumes in Nigeria recovering to over 100,000 units.
On Tuesday, Bajaj Auto shares closed 0.3% higher at Rs 8,411.25 on the National Stock Exchange (NSE).
Bajaj Auto's Q3 FY25 results reflect the company's resilience and strategic focus on exports and the green energy segment. Despite challenges in the domestic market, the company's overall performance demonstrates its ability to adapt and capitalize on growth opportunities.
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