Bajaj Auto Q4 Results: Profit declines, Rs 140 per share dividend declared

Two wheeler major Bajaj Auto recently reported its results for the March quarter. In the Jan - Mar ‘23 period, the automaker’s revenues increased by 12% from the previous year to Rs 8,929.23 crores. Moreover, consolidated net profit witnessed a yearly rise of 11.7% to Rs 1,704.74 crores for the same period.

The Bajaj Auto share price has had a stellar 2023 so far, gaining almost 21%. Further, in the past year, the Bajaj Auto share price has risen close to 11%.

So, how did Bajaj Auto perform in other key parameters in the Jan - Mar ‘23 period? What are analysts saying about the Bajaj Auto share price and Bajaj Auto earnings? Let’s try and decode!

Decoding Bajaj Auto Q4 Earnings

Bajaj Auto Revenues:

• Bajaj Auto’s revenue from operations for the Jan - Mar ‘23 period came in at Rs 8,929.23 crores, up 12% from the previous year.
   
• Total income also witnessed a 11.2% yearly growth to come in at Rs 9,192.73 crores for the quarter ended 31st March, 2023. The company derived more than 97% of its total income from the automotive segment as it recorded an income of Rs 8,927.65 crores, up 11.7% from the previous year. The rest (3%) came in from investments revenue which came in at Rs 265.08 crores, down 3% from the prior year.

Bajaj Auto Profits:

• Bajaj Auto reported profits of Rs 1,704.74 crores for the Jan - Mar ‘23 period. This denotes a rise of 11.7% from the previous year.
   
• On a before tax and finance costs basis, the critical Automotive segment recorded a profit of Rs 1,911.97 crores, up 13.5% from the previous year.

Bajaj Auto Vehicle Sales

• In the Jan - Mar ‘23 period, the auto major sold a total of 8,57,788 vehicles. This denotes a decline of 12.1% from the previous year.
   
• Two-wheeler sales for the Jan - Mar ‘23 period stood at 7,23,465 vehicles, down almost 16% from the previous year. 
   
• Commercial vehicle sales, however, witnessed a yearly rise 14.2% to come in at 1,34,323 vehicles for the Jan - Mar ‘23 period.

Bajaj Auto Dividend

Bajaj Auto declared a dividend of Rs 140 per share.

Bajaj Auto Q4 Earnings: Analyst view

Jefferies: The renowned brokerage has a “Buy” rating on the stock with a price target of Rs 5,100. Strong earnings growth potential coupled with an attractive dividend yield has been cited as tailwinds by the firm that can drive the Bajaj Auto share price higher in the near term.

ICICI Securities: The top domestic brokerage has a “Buy” rating on the stock with a price target of Rs 4,563. The firm believes that the eventual rise in average selling price of the company’s products has the potential to drive the Bajaj Auto share price higher.

Kotak Institutional Equities: The leading domestic brokerage has a “Reduce” rating on the stock with a price target of Rs 4,000. The firm has cited an eventual lowering of volumes sold of the company’s products as a headwind that can hurt the Bajaj Auto share price growth in the near term.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.