Results for the third quarter of 2023 for Bajaj Auto: ₹12,165 crore in operating revenue and a 37% increase in net profit

The automaker Bajaj Auto beat top brokerages’ estimates for the December 2023 quarter by reporting a net profit growth of 37% year over year (YoY).

Bajaj Auto revealed a 37% YoY increase in net earnings, or ₹2,042 crore, in its quarterly results. In the meanwhile, Bajaj Auto’s operating income increased by 26% to ₹12,165.33 crore in the third quarter.

Brokerages and media surveys had projected that Bajaj Auto’s net profit for the quarter ending in December 2023, which is anticipated to be reported at ₹1,950 crore, would climb by almost 32 percent. But this quarter’s profit margins exceeded expectations.

According to the company’s papers, Bajaj Auto reported a net profit of ₹1,491 and operating revenue of ₹9.315 crore for the same period last year.

In the meanwhile, Bajaj Auto’s EBITDA increased by 36.8% to ₹2,430 crore in the third quarter of the fiscal year that ends in March 2024, accounting for 20.1% of the company’s total earnings.

The business also said in its papers that compared to ₹7,644.55 crore during the same time last year, the overall costs were higher at ₹9,855.44 crore.

Bajaj Auto’s impressive Q3 performance, coupled with strong domestic demand for its bikes and three-wheelers, have helped the company surpass quarterly estimates for December 2023, making it one of the few.

Strong demand for its high-end motorcycles—led by the two Triumph models—benefited Bajaj Auto as well. Sales of the Dominar, KTM, and Husqvarna models in its premium category more than quadrupled during the quarter.

From 19.1% a year earlier and 19.8% the previous quarter, earnings before interest, taxes, depreciation, and amortization margin increased to 20.1% during the quarter.

The company’s share prices surged after the release of the quarterly reports, rising 1.65% before the results were announced on Wednesday, when the markets closed.