Bajaj Auto, one of the leading two- and three-wheeler manufacturer in the country has announced its financial results for Q4 FY 2024 and full year FY2024.
The company reported revenue of Rs 11,485 crore in Q4, which was 29 percent higher YoY; EBITDA at Rs 2,307 crore, up 34 percent YoY and net profit of Rs 1,936 crore, up 35 percent YoY.
During the quarter, the company saw its domestic motorcycles see smart uptick in the 125cc+ segment, registering 4x growth compared to the rest of industry. The commercial vehicles sustained its stepped-up sales trajectory of over 100,000 units in the quarter. While e3Ws continue to grow volumes, significant strides have been made to expand the network to 60 cities (3Q: 23) that will facilitate its rapid scale-up.
The Chetak electric scooter also delivered its highest quarterly volume, a level that was greater than what was sold in all of last year. A range of actions on portfolio, network and activation continue unabated to grow the business and share beyond this On the export front, the revenues the company says saw double digit YoY as it benefited from a richer mix and better realisations, although volume was flattish compared to last quarter but up around 20 percent compared to the same period last year.
Triumph volumes step up further as nearly 18,800 units are delivered this quarter, with about 70 percent of this going to seed products in overseas markets. Work is well underway to unlock capacity in the next few months to service the growing domestic network and exports potential.
FY2024 performance
In FY2024, the revenue touched an all-time high of around 44,685 crore, up 23 percent YoY, arising from the record sales of both vehicles and spares.
The automaker saw consistent growth across all quarters (with quarterly highs on 3/4) reflecting the resilient business model, where a strong domestic performance more than made up for muted exports which continued to be impacted by the challenging context in overseas markets.
The company clocked record net profit of Rs 7,479 crore. Bajaj Auto attributes the growth to the dynamic P&L management, richer product mix and operating leverage; the accretion delivered after absorbing the significant investment on electric scooters, underscoring the commitment to its growth.
Bajaj Auto says the domestic business achieved its largest revenue, on sustained momentum that led to double digit growth for 8 quarters on the trot. This was underpinned by the robust volume-led growth across all businesses and market share gains – buoyant domestic motorcycles, significant uptick on premium motorcycles with an expanded portfolio, acceleration in three-wheeler sales, and quadrupling of electric vehicles.
The company has stepped up exports in the second half to close the year flat, as it navigated rough macro-economic conditions across key countries. The strong growth in LATAM which achieved its highest sales, further aided by MENA, partially alleviated the slowdown in Africa and Asia. Exports share remains steady as the business decisively acts and adapts to manage currency constraints and market volatility.
KTM too delivered its biggest year while Triumph added strength to the premium portfolio, delivering 42,000 units in its eight months post launch Triumph capacity augmentation with vendors is underway to feed the further scale up across both domestic and export markets; the Speed 400 and Scrambler 400X experience is now present across 56 cities and 16 countries, while continuing to expand.
The commercial vehicle sales also surge ahead, closing the year with historic high volumes, having grown over 50 percent YoY. The well-established proposition of the Bajaj ‘RE’ and ‘Maxima’ products drove market share to around 80 percent for the first time, while the encouraging response to the e3W and segment leadership in the early launch cities triggered its accelerated rollout (now in 60 cities).
Chetak stayed resolute on its journey of expansion, as volumes grew 3x YoY and thus attaining the #3 player in the segment (Last Year: #7). The company attributes the performance to the significant investments on competitiveness and capabilities, coupled with impactful interventions on product innovation, network expansion (now in 164 cities) and brand activation are yielding results and positioning the business well for further scale up.
