Bajaj Auto’s net profit in the June quarter doubled to Rs 1,061 crore on a lower base of last year and a strong export performance this quarter. In Q1FY21, the company had reported a net profit of Rs 528 crore.
The two- and three-wheeler major’s turnover also doubled to Rs 7,715 crore, as did revenue from operations to Rs 7,386 crore. The performance in the June quarter was not comparable to either Q1FY20 or Q4FY21 due to lockdowns and restrictions, the company said.
Bajaj Auto said Q1FY22 had been a challenging quarter and the recovery over the past three quarters was undone by the second wave of Covid-19. The restrictions due to full or partial lockdowns resulted in weaker domestic demand. However, the impact on the domestic market was partially off-set with strong exports across all major geographies.
Soumen Ray, CFO, Bajaj Auto, said from an average quarterly sale of 9,000 units they had come down to 7,300 units. While markets were opening up, sales were not bouncing back as fast as last year, Ray said.
Material costs increased but could not be passed on to customers during the quarter, and so remained unrecovered, Ray said. He expected under-recovery to continue during the second quarter.
However, some of this was offset by a rise in exports and higher US dollar realisation ($74.25). Bajaj’s export revenue during the quarter was at Rs 4,500 crore.
The company’s operating income was at Rs 1,153 crore, while operating profit was Rs 1,087 crore. Operating Ebitda margin declined sequentially to 15.6% from 18.1% in Q4FY21. The company said this was due to lower revenues from operations resulting in a loss on spread of fixed costs and increase in raw material costs.
The company said their market share in the domestic motorcycle segment had gone up to 19.7% in Q1FY22 from 17.3% in Q4FY21. Bajaj Auto’s total sales volume during Q1FY22 was one million units. The company sold 6,48,000 units in international markets, despite challenges in availability of containers, with Africa and LATAM continuing to record strong sales.
Commercial vehicles sales were still at a fraction of pre-pandemic levels, with 14,000 units sold in the domestic market. But the company continued to lead with a 65.3% share of the domestic market.
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