Bajaj Auto Shares In Green As Net Profit Jumps 19% To ₹1,988 Cr

Bajaj Auto shares jumped on Tuesday afternoon after the company announced its June quarter results.

What Happened: Bajaj Auto reported a 19.43% year-on-year increase in standalone net profit to ₹1,988.34 crore in the quarter ended June. Its revenue from operations gained 15.69% YoY to ₹11,928.02 crore in the quarter. Its EBITDA margin was at 20.24%. The results were mostly in line with analyst expectations of ₹1,932.5 crore net profit and ₹11,737.07 crore revenue.

In the corresponding quarter of the previous year, the company reported a net profit of ₹1,664.77 crore and a revenue of ₹10,309.77 crore.

The company attributed the strong results to “robust vehicle sales and record spare revenue” in its press release for the result. Pulsar’s premiumisation thrust led to the delivery of its strongest quarters, the company said. The Triumph model sold 19,000 units in Q1 and 60,000 units since its launch in July 2023 contributing ₹1,200 crores of sales in total, the company added.

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In July, Bajaj Auto launched Bajaj Freedom, the world’s first compressed natural gas (CNG) motorcycle, priced at ₹95,000. The company expects the vehicle to reduce operating costs by up to 50% compared to similar internal combustion engine (ICE) motorcycles. The Bajaj Freedom has a dual-fuel capability with an auxiliary petrol tank of 2 litres, providing a combined range of 330 kilometres.

Brokerages were bullish on the move as they expect the company to sell 10,000 units by the end of the year.

Price Action: Shares of Bajaj Auto rose 1.74% to ₹9,841.95 on Tuesday after the results came out.

Image From Shutterstock.

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