India’s second-largest two-wheeler manufacturer, Bajaj Auto, posted its Q1 FY23 results on July 26, 2022. The company reported a 11% YoY (Year on Year) jump in its standalone net profit which came in at Rs 1,173 crore from Rs 1,061 crore in the year ago period. On a sequential basis, however, the net profit was down 20% from the Rs 1,469 crore reported in the previous quarter.
Bajaj Auto’s revenue from operations is up 8% YoY to Rs 8,005 crore in the quarter under review. The company has announced revenues at Rs 7,386 crore in Q1 FY22. On a QOQ (Quarter on Quarter) basis, the revenue from operations was largely flat.
Despite supply constraints and cost headwinds, EBITDA for the company grew 15%, with margins improving by 100 base points despite supply constraints and cost headwinds. The margin growth may be attributed to judicious price increases, better foreign exchange realisation, and favourable offset in the material cost inflation.
Bajaj Auto’s total exports were down by 10% YoY to Rs 5.80 lakh crore in the quarter under review from Rs 6.48 lakh crore in the year ago period while the same was flat on a sequential basis. ASEAN and LATAM markets were saving graces for the company despite weak macros. Total volumes for the automaker were however down 7% for the quarter to 9,33,646 units against 10,06,014 units in the year-ago quarter. According to the company filing, sales for the quarter were impacted by the inadequate availability of semiconductors, although the situation improved in the latter part as new supply sources were developed.
At the time of the declaration of the results, around 2:05 pm, the Bajaj Auto share was trading in the red at Rs. 3,982, reacting negatively to the result.
To read the RA disclaimer, please click here
Research Analyst: Bavadharini KS