Views on Bajaj Auto Ltd. Q4 FY24 Result

Views on Bajaj Auto Ltd. Q4 FY24 Result

By Dhruv Mudaraddi, Research Analyst, StoxBox on Bajaj Auto Ltd. Q4 FY24 Result.

Bajaj Auto’s performance has been resilient, with robust domestic growth compensating for sluggish exports amidst global challenges. Notably, dynamic P&L management, product mix enhancements, and operational efficiencies have bolstered margins, especially with the successful integration of significant investments in electric scooters. Market share gains in the domestic segment, particularly in the 125cc+ segment, alongside strong export volumes and a surge in EV sales, underscore the company’s competitive strength. The commercial vehicle (CV) segment’s remarkable growth, propelled by BAJAJ RE and Maxima commanding an 80% market share in 3W, further strengthens its position. The success of the Chetak product range, driven by strategic innovation and network expansion, solidifies its foothold in the market. Looking ahead, the company is well-poised to capitalize on capacity expansion and the continued growth of the EV market. Moreover, with the anticipated IPOs of electric vehicle rivals Ola and Ather leading to sector re-rating, Bajaj Auto’s valuation multiples are likely to remain elevated, signaling a positive outlook for investors.

Bajaj Auto Ltd. Q4FY24 Result First Cut – Efficiency and sales mix led growth; Chetak poised well

  • The company reported a revenue growth of 29.8% YoY / down 5.2% QoQ in Q4FY24, beating market expectations
  • Revenue growth can be attributed to the robust revival in 2W demand, driven by the newer models, focus on customer engagement, a revival in exports (led by Triumph), and sustained growth in the 125 cc+ motorcycles segment.
  • The overall domestic business witnessed a 28% YoY surge in volumes with robust annual growth in both two-wheelers and CVs of 10% and 32%, respectively. Overall, volume growth was at 24% YoY. Exports saw a recovery, rising 19% YoY.
  • EBITDA stood at (up 34.3% YoY / up 5.1% QoQ) in Q4FY24, beating street estimates while EBITDA margin came in at 20.1% (up 80 bps YoY / up 2 bps QoQ) on a richer mix and favorable input costs.
  • Net Profit for the quarter was up 35.1% YoY / down 27.7% QoQ. The PAT margin stood at 16.9% (up 77 bps YoY / down 523 bps QoQ).
  • The company declared a dividend per share. The record date for the dividend is 14 June 2024.