Car maker Bajaj Auto reported a net profit increase of 37 percent year-on-year (YoY), much better than the projections made by top brokerages for its December 2023 quarter.
In its quarterly results, Bajaj Auto reported a 37 percent YoY hike in net profits, standing at ₹2,042 crore. Meanwhile, the revenue from operations for Bajaj Auto spiked by 26 percent for the third quarter, standing at ₹12,165.33 crore.
Brokerages and media polls had predicted a net profit increase of around 32 percent for Bajaj Auto for the quarter ending in December 2023, expected to be reported at ₹1,950 crore. However, the profit margins surpassed predictions for this quarter.
In the corresponding quarter last year, Bajaj Auto had posted a net profit of ₹1,491 and revenue from operations at ₹9.315 crore, the company said in its filings.
Meanwhile, the EBITDA for Bajaj Auto jumped 36.8% to ₹2,430 crore in the third quarter for the financial year ending in March 2024, standing at 20.1 percent in the Q3 results.
The company further said in its filings that the total expenses were higher at ₹9,855.44 crore as against ₹7,644.55 crore in the same period a year ago.
With its stellar Q3 results, Bajaj Auto has become one of the few companies to beat the quarterly estimations for December 2023, with its profits boosted by strong domestic demand for its motorcycles and three-wheelers.
Bajaj Auto also benefited from strong demand for its premium motorcycles, led by the two Triumph models. Sales in its premium category, which also includes Dominar, KTM and Husqvarna models, more than tripled in the quarter.
Earnings before interest, taxes, depreciation and amortization margin improved to 20.1% during the quarter from 19.1% a year before and 19.8% in the previous quarter.
The boost in the profits for the quarterly reports led to its share prices rallying when the markets closed on Wednesday, up 1.65 percent ahead of the result announcement.
(With inputs from Reuters)