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Bajaj Auto, India's largest two-wheeler manufacturer by market capitalization, has reported a strong performance for the second quarter of fiscal year 2025 (Q2FY25). The company witnessed a 9% year-on-year growth in net profit, reaching Rs 2,005 crore for the quarter ending September 2024. This growth was achieved despite an additional provision of Rs 211 crore to account for the cumulative one-time impact of Deferred Tax on Investment Income, resulting from changes in the Finance Act, 2024.
The company's revenue also saw a significant increase, rising by 21.8% year-on-year to Rs 13,127.5 crore. This growth was attributed to double-digit growth in motorcycle sales and improved realizations. Bajaj Auto's strong performance in the quarter is further highlighted by its Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA), which reached Rs 2,653 crore, representing a 24.4% year-on-year growth. This marks the company's highest ever EBITDA in a single quarter, with a corresponding EBITDA margin of slightly over 20%.
In terms of sales volume, Bajaj Auto achieved a 16% year-on-year and 11% quarter-on-quarter growth, reaching a total of 12,21,504 units in Q2FY25. This represents a significant increase from the 10,53,953 units sold in the same period last year. Domestic two-wheeler sales witnessed a particularly impressive growth of 26% year-on-year, reaching 636,801 units. Meanwhile, exports saw a 5% year-on-year growth, reaching 396,407 units. This strong performance indicates Bajaj Auto's sustained dominance in the domestic market and its expanding global presence.
The company's commitment to its international growth strategy is further emphasized by its decision to invest $10 million in its Brazilian subsidiary. This investment signifies Bajaj Auto's confidence in the Brazilian market and its potential for future growth. The company's strong financial performance and strategic investments suggest a positive outlook for Bajaj Auto in the coming quarters.
Source: Bajaj Auto reports 9% growth in profit in Q2 of FY25, to pump $10 million in Brazilian subsidy