Conference Call with Bajaj Auto Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
2/3 Wheelers company Bajaj Auto announced Q2FY25 results Financial Highlights: Revenue from operations at > Rs 13,000 crore for the first time, was up 22% YoY arising from new highs on both vehicles and spares. At Rs 2,653 crore, EBITDA registered its biggest ever, growing a solid 24% YoY and with margin at >20% again. Adjusting for the exceptional deferred tax provision, Profit after Tax (PAT) delivered a new record at Rs 2,216 crore, up 21% YoY. Reported PAT was at Rs 2,005 crore, after making an additional provision of Rs 211 crore to account for the cumulative one-time impact on Deferred Tax on Investment Income, due to the withdrawal of indexation and change in tax rate in the Finance Act, 2024. Other Highlights: Green Energy portfolio scales up to reach new milestones; ~100K total units sold in Sept, 100K electric vehicles sold in the quarter. The portfolio comprising of electric and CNG vehicles across both the 2W and 3W portfolio, now contributes a significant 40% of total domestic revenues - a testament of the company's strategy being translated into action Sustained momentum in the Domestic business led to its highest revenue and tenth consecutive quarter of double-digit growth Led by double digit growth on both motorcycles and commercial vehicles and propelled by the near trebling of electric scooters - a reflection of the broader portfolio strength in leveraging opportunities across both conventional and emerging segments Export revenue grew in double digits, on better USD/INR realisation, a richer mix and another record quarter for LATAM Pulsar continues to gain traction across markets as it delivered its highest quarterly sales of >1100K units , while Africa (notably Nigeria) albeit lower than the previous year, continues to see an encouraging directional uptick, partly aided by focussed interventions taken Motorcycles maintained double digit growth, as Pulsar's premiumization thrust drives sports segment competitive outperformance lmpactful launch of 'Freedom 125', the world's first CNG integrated bike, which halves operating costs and offers best in class rider comfort features (first in class mono-linked type suspension, long quilted seat); >30K units billed since start, now across >350 cities. Domestic market focus saw Triumph deliver 50% QoQ volume (10K domestic, 16.5K total) from an extended network of >100 dealers. Elevated the modern classic product line up with the launch of the Speed T4 (technology packed for relaxed riding experience) and the MY25 Speed 400 (upgrade of the erstwhile Speed 400 offering a beefier look with enhanced performance features). At 140K units, Commercial Vehicles clocked another all-time high on volumes and resultant revenue. Well on the path to replicating the leadership of the ICE 3W segment to e3Ws, as the segment exit market share reached 35%, having doubled from the end of last year, driven by quality products, a trusted brand, and network expansion to over 600 touchpoints. Chetak electric scooters accelerate its competitive play-volumes at 70K, up >3X YoY with Sept market share at 21% (11% in June). Sharp execution of the EV strategy on both product and distribution fronts; the step up driven by the successful launch of the affordable variant last quarter and leveraging the wider motorcycle network to expand availability to nearly 3,000 touch points now. Track record of strong cash generation continued with the quarter adding > Rs 2.000 crore of Free Cash Flow. Balance Sheet remains healthy with surplus cash of Rs 16,392 crore, after having invested Rs 1.200 crore behind strategic growth enablers (primarily capital infusion into Bajaj Auto Credit Ltd. and EV capex) and distributing Rs 2.233 crore as dividend in H1FY25. Result PDF