Pune-based two-wheeler manufacturer Bajaj Auto Ltd on Wednesday, October 18, reported a 20% year-on-year (YoY) rise in net profit for the September quarter at Rs 1,836.14 crore. It was Rs 1,530 crore in the year-ago quarter.

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The profit figure was much higher than CNBC-TV18's poll of Rs 1,752 crore.

The Bajaj Group company's total revenue from operations increased by 5.6% to Rs 10,777.27 crore, compared to Rs 10,202.8 crore in the same quarter a year ago.

The earnings before interest, taxes, depreciation and amortization (EBITDA) came in at Rs 2,133 crore. The quarterly EBITDA surpasses the Rs 2,000 crore milestone for the first time, growth of 21% YoY. The operating margin was at 19.8%, up over 260 basis points YoY, driven by better realisation and a richer product mix, which more than covered the drag arising from investments on growing electric scooters.

Exports stay on course to making a gradual recovery, amidst volatile market conditions - volumes up 8% sequentially, the company said. The market share holds steady with volume uptick in Africa, LATAM and SAME allowing for a slight build back of inventory in select markets; actions continue unabated to navigate currency constraints and challenging macros in overseas markets.

Strong cash generation sustained as over Rs 3,600 crores of free cash flow was added in first half, 1.6 times higher than H1FY23. The company has a robust balance sheet with surplus funds at Rs 17,326 crore as on September 30, 2023, after dividend distribution of Rs 4,000 crore during the quarter.

Shares of Bajaj Auto Ltd settled 0.048% higher at Rs 5,143.70 apiece on the NSE today. The scrip has gained 45% since the beginning of this year and are the fourth best performers on the Nifty 50 index.

First Published:Oct 18, 2023 4:55 PM IST