Bajaj Auto Q4 results: Revenue up 12%; PAT dips 2% to Rs 1,433 crore

'Export demand sluggishness may have bottomed out'

Pune-based two-wheeler major Bajaj Auto posted a 2 per cent decline in profit after tax for the fourth quarter of the 2022-23 fiscal year to Rs 1,433 crore even as its revenue from operations grew 12 per cent year-on-year (YoY) to Rs 8,905 crore.

For the full year, revenue from operations was at its highest ever — Rs 36,428 crore, up 10 per cent despite the constrained supplies early on and particularly challenging overseas markets for most part of the year. Overall exports dipped 41 per cent, while Ebitda was up 25 per cent YoY for FY23 and PAT grew 12 per cent to Rs 5,628 crore.

The company said the Q4 revenue growth was led by sustained momentum in the domestic business, which delivered more than 50 per cent volume growth YoY. Compared to the same time last year, better foreign exchange realisation, judicious pricing and a richer product mix all helped offset the drop in overall volumes arising from sluggish exports, it added. Ebitda grew 26 per cent YoY to Rs 1,718 crore, with a resulting Ebitda margin of 19.3 per cent.

Riding on the Pulsar portfolio and Platina 110 ABS, the domestic motorcycle sales continue to do well. Three-wheeler sales crossed the 100,000-unit milestone for the first time since the pandemic. Bajaj Auto said they have witnessed a strong rebound to pre-Covid-19 levels (of over 100 per cent) compared to about 45 per cent for the rest of the industry.

Exports, however, have progressively worsened given the deteriorating macros across overseas markets. Rakesh Sharma, executive director, Bajaj Auto, told reporters that the tumble down in exports started from the first quarter of FY23. Not only Africa, Latin American and other markets also saw sluggish demand from May-June last year.

“We feel that demand in these countries have bottomed out in the fourth quarter, and in Q4 the retail demand is better than Q3 retail demand. However, dollar availability remains a challenge in these markets and their central banks maintain a cautious outlook,” he said. Therefore, Bajaj Auto feels that after a quarter or so, the picture will be clear.

Sharma said Sudan, which is undergoing a civil unrest, was not one of the top three markets in Africa, and therefore it has not had a major impact on the company’s exports. Nigeria, which had seen volume going down from the usual 50,000 units a month to 4,000 units in February, has seen some revival in March with demand touching 28,000 units.

Meanwhile, building on the work done on the electric vehicle supply chain, Chetak has commenced its scale-up phase and retail sales have touched 5,600 units or so in March. Chetak has bookings for 7,800 units. By mid-June, the Chetak unit sales are likely to get to the 10,000-mark.

The quarter saw Bajaj and Yulu launch their new electric two-wheeler platform.