Bajaj Auto Q1 net profit, revenue more than double on low base

Shares of Bajaj Auto rallied nearly 2% on posting strong earnings performance for the Apr-Jun quarter.
The maker of ‘Pulser’ two wheeler reported a Q1 standalone net profit of Rs 1,061 crore, more than doubled from Rs 528 crore in the corresponding quarter of the previous fiscal, owing to a low base. The company’s revenue from operations rose nearly 140% to Rs 7,386 crore as compared to Rs 3,079 crore year-on-year (YoY).
However, the profit and revenue fell sequentially as the net profit in the previous quarter stood at Rs 1,332 crore whereas the revenue at Rs 8,596 crore.
On a consolidated basis, the PAT grew to Rs 1,170.17 crore from Rs 395.51 crore YoY but down from Rs 1,551.28 crore logged in Q4FY21.

Separately, the company announced formation of a wholly-owned subsidiary to venture into electric mobility segment.
Earnings before interest, tax, depreciation, and amortisation (Ebitda) also surged to Rs 1,120 crore, up from Rs 408.5 crore of Q1FY21. Surprisingly, the Ebitda margin expanded to 15.2% from 13.3% last year. Sequentially, however, it declined from 17.7% amid no respite in commodity cost inflation (metals, rubber, plastics).
Ebitda margin was largely impacted on lower revenue from operations resulted in loss on spread of fixed costs by 160 bps, increase in cost of raw-material, and net of increase in prices which resulted in lower Ebitda margin by 220 bps. This was, however, partially off-set from higher US dollar realization and improved mix.
For Q1FY22, the company sold over 1 million units in India and across the globe. Individually, sales of motorcycles units stood at nearly 342,000 in the domestic market, commading a share of 19.7% in Q1FY22 as against 17.3% in Q4FY21.

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