Bajaj Auto Q3 result: How did the two wheeler major perform in the October-December period?

Bajaj Auto reported its December quarter results on Wednesday after the market closed. The share price closed 1.45% higher ahead of its earnings. In the last one year, Bajaj Auto has given returns of over 6% compared to the 12% returns given by the NIFTY Auto index. However, there have been no significant gains for investors even in the last five-year time - a 15% increase.

Bajaj Auto Share Price Movement 

Bajaj Auto Q3FY23: Highlights

Bajaj Auto Q3FY23 earnings- Profit rise: Bajaj Auto has reported a 23% on-year jump in net profit to Rs 1,491 crore in the Oct-Dec 22 period, beating analyst expectations. Analysts' have earlier estimated a net profit of Rs 1,379 crore. Sequentially, the net profit was down from Rs 1,530 crore. On domestic motorcycles, industry festive demand, particularly in the top-end commuter/sports segment, was buoyant and the company outperformed with strong growth in the segment. 

Bajaj Auto Q3FY23 revenue: Beat estimates: Bajaj Auto’s revenue from operations increased marginally 3% YoY to Rs 9,315 crore from Rs 9,022 crore in the same quarter a year ago. Analysts had earlier estimated revenue of about Rs 8,998.50 crore. Sequentially, the revenue declined from Rs 10,202.8 crore.

Revenue growth was driven by robust double-digit growth in the domestic business. The domestic growth offset the drop in exports arising from challenging market conditions. The spares revenue came in at an all-time high.

Bajaj Auto Q3 volumes increase: Bajaj Auto sold 9.83 lakh units in the December quarter, compared with 11.81 lakh units a year ago and 11.51 lakh units in Q2FY23. The sales were down 17% year on year. The company saw domestic volumes increasing marginally by 4% from Q3FY22 across both three-wheeler and two-wheeler segments.

Bajaj Auto Margins rise: Bajaj Auto’s EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 29% on-year to Rs 1,777 crore. The EBITDA margin expanded by 390 basis points YoY to 17.2%. This was the highest-ever quarterly EBITDA, surpassing the record set in the previous quarter.

Bajaj Auto Buyback and other updates: The company has mentioned that it has completed the share buyback in the quarter with a total payout of ~ Rs 3,100 crores (including tax). The Balance Sheet continues to be healthy, with surplus cash of Rs 14,894 crores on 31 st Dec 2022, providing the capacity for growth investments. 

Bajaj Auto Management commentary: "While the company continues to navigate this situation through decisive actions, market share remains stable and the resilient performance in ASEAN is alleviating in part, the drop in volumes across other regions. Commercial vehicles maintained their path of recovery to pre-covid levels -- now at -75% - as the quarter saw strong growth with stepped-up volumes and market share hit an all-time high across segments," Baja Auto said in a statement.

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