Bajaj Auto Ltd (BOM:532977) Q3 2025 Earnings Call Highlights: Record Revenue and Market Share ...

In This Article:

  • Revenue: INR 12,807 crores, up 6% year-on-year.

  • EBITDA: INR 2,581 crores, up 6% year-on-year, with margins at 20.2%.

  • Profit After Tax (PAT): Over INR 2,100 crores on a stand-alone basis.

  • Consolidated Profits: Nearly INR 2,200 crores.

  • Export Revenue: INR 505 million, with significant growth in Latin America and Africa.

  • Electric Vehicle Sales: Almost 100,000 units, with a market share increase in electric 2-wheelers and 3-wheelers.

  • Spare Parts Revenue: Over INR 1,500 crores for the first time in a quarter.

  • Cash Surplus: INR 15,000 crores, with INR 3,000 crores generated as free cash flow in the first 9 months of FY '25.

  • Financing Subsidiary AUM: Over INR 7,000 crores, with 520,000 vehicles financed.

  • Green Energy Portfolio: Comprising 44% of domestic revenue.

Release Date: January 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Bajaj Auto Ltd (BOM:532977) achieved record volumes of over 1.2 million units and revenue of almost INR 13,000 crores in Q3 FY 2025.

  • The company recorded its highest ever market share in the electric portfolio for both 2-wheelers and 3-wheelers.

  • Exports grew by 27% in Q3, with Latin America showing over 40% growth, driven by premium brands like Pulsars and Dominars.

  • The Chetak business unit increased its market share from 13% to 22% in the electric 2-wheeler segment.

  • Bajaj Auto Credit Limited, the company's captive finance arm, turned profitable in its first year of operations.

Negative Points

  • There was a 50% drop in KTM exports due to issues faced by KTM overseas, impacting overall export performance.

  • The company experienced some erosion of market share in the entry-level motorcycle segment due to not participating in aggressive pricing strategies.

  • Currency volatility, particularly in South Asia and Africa, remains a concern for future export growth.

  • The domestic motorcycle market share remained stagnant in the 125cc+ segment, with no increase from the previous quarter.

  • The entry-level motorcycle segment faced challenges due to substantial pricing and discount actions by competitors.

Q & A Highlights

Q: Can you provide insights into the expected growth for Bajaj Auto's export business and the markets driving this growth? A: Rakesh Sharma, Executive Director, stated that the growth outlook for exports is expected to be 20% plus in the near term, driven by strong positions in Latin America, Africa, and other regions. However, long-term predictions are uncertain due to geopolitical and macroeconomic factors.