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Key projections for Q3 include a projected profit rise of 4% to ₹2,128 crore, compared to ₹2,042 crore in the same quarter last year. Revenue is expected to increase by 7% to ₹12,963 crore, up from ₹12,114 crore. EBITDA is anticipated to grow by 5% to ₹2,545 crore, compared to ₹2,430 crore year-on-year. The margin is forecasted to dip to 19.6%, down from 20.1%, marking the first time it may fall below 20% since the second quarter of the 2023-24 fiscal.
Investors should pay attention to several key areas during the earnings announcement. Commentary on market demand and potential price hikes will be crucial. Positive trends include a better export mix and favourable foreign exchange conditions. However, the company may face challenges due to a weaker mix of motorcycles over 125CC in both domestic and export markets, along with a higher share of lower-margin electric and CNG two-wheelers.
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In the second quarter, Bajaj Auto reported robust earnings, achieving its highest quarterly revenue and EBITDA figures. The company experienced strong domestic performance, with continued growth in domestic sales while exports showed signs of recovery. The EBITDA margin was maintained above 20% for four consecutive quarters, despite rising commodity costs impacting margins. The green energy portfolio, including CNG and electric vehicles, contributed 40% to total revenue.
In Q2 FY25, Bajaj Auto’s adjusted net profit increased by 21% to ₹2,216 crore, adjusted for a one-time tax impact. The reported net profit rose by 9% to ₹2,005 crore. Revenue grew by 22% to ₹13,127 crore, while EBITDA increased by 24% to ₹2,652 crore. The gross margin slightly decreased to 28.7% from 29% year-on-year.
Bajaj Auto has seen double-digit growth in both motorcycles and commercial vehicles, with significant increases in electric vehicle sales. The company has also invested strategically in growth initiatives, including capital infusion into Bajaj Auto Credit and electric vehicle development.
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