Bajaj Auto Q4 net profit falls 2% YoY to ₹1,433 crore

• Bajaj Auto’s Q4 standalone net profit fell to ₹1,433 crore, down by nearly 2% YoY.
  
• Rising input costs and shrinking exports ate into the two-wheeler maker's volumes as well as bottomline.
  
• During FY23, Bajaj Auto’s exports fell by a massive 25.5% due to sluggishness in key foreign markets.
  

Bajaj Auto’s Q4 standalone net profit fell to ₹1,433 crore, down by nearly 2% YoY. Rising input costs and shrinking exports ate into the two-wheeler maker's volumes as well as bottomline, even as the company’s topline expanded by 12% to ₹8,905 crore during the quarter.

For the full FY23, Bajaj Auto’s revenue rose 9.9% YoY to ₹36,428 crore over the previous year, while its net profit rose 12% to ₹5,628 crore during the same period.

Stress of rising input costs in FY23 was clearly visible – the company’s input costs rose by nearly 9% to ₹24,073 crore, eating into its profits.

Despite the quarterly decline in revenue, Bajaj Auto still managed to beat analyst expectations. ICICI Direct had forecast a revenue of ₹8,526 crore, while Bajaj Auto exceeded it with a revenue of ₹8,905 crore.

Domestic sales cushion the blow from weakness in exports

On the two-wheeler front, which constituted nearly 88% of Bajaj Auto’s total volumes, the company witnessed a major decline in its exports. During FY23, Bajaj Auto’s exports fell by a massive 25.5% due to sluggishness in key foreign markets. Domestic sales rose by 10%, somewhat cushioning the blow from the weakness in exports.


Source: Company reports

“Sustained momentum on the domestic front led to strong double digit revenue growth, which more than made up for the setback on exports arising from sluggish markets,” the company said in its exchange filing. The company added that overseas markets were “particularly challenging” for most of FY23.

On a positive note, quarterly commercial vehicle sales in the domestic market crossed the 1 lakh mark for the first time since the Covid-19 pandemic.

Here’s Bajaj Auto’s Q4 and FY23 in numbers


Source: Company reports

The company declared a dividend of ₹140 per share, with the record date set as June 30, 2023, and the payment date set as July 28, 2023.

Expanding electric vehicle footprint with Chetak and Yulu

Although it was late to the electric vehicle party, Bajaj Auto underlined its efforts to expand its presence in this segment. The company stated that its Chetak electric two-wheeler sales hit a volume of over 5,500 units in March.

“The progress of various initiatives and a secure outlook has allowed for the expansion of the exclusive store network that now stands at 105 dealerships and 42 experience centres across 84 cities, with further scale up well underway,” the company said.

It also partnered with the Bengaluru-headquartered Yulu to launch a new electric two-wheeler platform. During Q4, Bajaj and Yulu unveiled two new electric vehicles, the Miracle GR and DeX GR.

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