Bajaj Auto Net Profit Declines 22 Per Cent In Q3 FY 2022

Bajaj Auto, India's largest exporter of motorcycles, and one of the country's leading two-wheeler manufacturers, has reported a 22 per cent year-on-year decline in net profit for the quarter ended December 31, 2021. The company's revenues from operations grew 1.3 per cent year-on-year to Rs. 9,021 crore for the quarter, despite the weak demand environment in the domestic two-wheeler market, which reflected in the 10 per cent decline in overall volumes for Q3 FY 2022. Bajaj Auto's volumes are reported at 11,81,361 units in Q3 FY 2022, compared to 13,06,810 units in the same quarter a year ago.

Also Read: Bajaj Auto Reports Highest-Ever Export Volumes Of 25 Lakh In A Calendar Year

Bajaj Auto is India's largest exporter of motorcycles. The company exported 2.5 million motorcycles in calendar year 2021.

In recent months, the domestic two-wheeler industry has been faced with several challenges, including rising raw material costs, chip shortages as well as a disruption led by electric vehicle companies. Rising fuel prices have also shifted the demand in the mass market segments towards electric two-wheelers. Despite a diversified portfolio, and having a strong presence in overseas markets, Bajaj Auto has not remained unaffected. Bajaj Auto's EBITDA (earnings before interest, taxes, depreciation and amortization) fell 20 per cent to Rs. 1,405 crore. The marginal revenue growth has been largely aided by price hikes to compensate for the surge in raw material costs.

Also Read: Bajaj Auto Sales Down 6 Per Cent In December 2021

In December 2021, Bajaj Auto announced setting up a new electric vehicle (EV) manufacturing facility

During the October to December 2021 quarter, the domestic motorcycle segment recorded a decline of 23 per cent. In fact, Bajaj Auto fared marginally better recording sales of over 4,69,000 units, a decline of 20 per cent over Q3 FY 2021. According to Bajaj Auto, the company's market share improved to 19.2 per cent in Q3 FY 2022, as against 18.6 per cent in Q3 FY 2021 and 18.1 per cent in FY 2021. Exports continue to record strong sales with average monthly volumes in excess of 2,19,000 units. In fact, for calendar year 2021, Bajaj reported export volumes of 25 lakh units, the highest-ever for the company.

Also Read: Bajaj Auto Q2 FY 2022 Profit Grows 12 Per Cent To Rs. 1,275 Crore

In the domestic commercial vehicle market, the industry recorded a growth of 5 per cent over Q3 FY 2021, while Bajaj Auto recorded a growth of 52 per cent and reported market share of 71 per cent. Overall commercial vehicle sales of Bajaj Auto in Q3 FY 2022 are reported at 1,32,816 units, a growth in 18 per cent over Q3 FY 2021 volumes.