This Large Cap Automaker Is Gaining After Q3 Results Beat Street Estimates

Bajaj Auto‘s share price was on the climb after the two-wheeler maker reported a robust performance in the third quarter, beating market expectations.

What Happened: The automaker’s standalone net profit jumped 37% to ₹2,042 crore, outperforming street estimates. In comparison, its profit stood at ₹1,491 crore in the corresponding quarter of the previous year.

Revenue from operations for the quarter surged 30%, reaching ₹12,114 crore, also beating expectations. It had posted a topline of ₹9,315 crore a year ago. Revenue growth was attributed to strong performance in the domestic business, fuelled by efficient execution and impactful activation during the festive season.

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Recovery Despite The Odds: Despite challenges in overseas markets affecting export sales growth, the company indicated an ongoing recovery in this segment. Bajaj Auto achieved its highest-ever quarterly EBITDA of ₹2,430 crore, marking a 37% increase. Margins also rose 100 basis points to 20.1% during the third quarter.

The sharp expansion in margins was attributed to better realisations, effective cost management and operational leverage, which more than compensated for competitive investments in scaling up electric scooters.

Its domestic business experienced robust growth, with volume-led revenue surging nearly 50%. This growth spanned across all segments, with motorcycles, especially in the 125 cc+ category, contributing significantly. Commercial vehicles maintained momentum, and the electric portfolio exhibited a steady ramp-up.

Pulsar, with a quarterly volume reaching 400,000 units, led the growth in the competitive 125cc+ segment. Domestic two-wheeler volumes witnessed an increase of 44% to 6.55 lakh units, while commercial vehicle volumes grew by 38% to 1.22 lakh units.

Bajaj Auto reported exports approaching double-digit revenue growth, driven by a favourable mix and dollar realisation. Two-wheeler export volumes experienced a marginal decline of 3% to 3.84 lakh units, and commercial vehicle exports dropped by 12% to 37,976 units.

Price Action: Bajaj Auto’s share price was up 0.64% at ₹7,258.90 near the start of trade on Thursday.

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