Bajaj Auto Q1 net profit, revenue more than double on low base
Premium- Bajaj Auto said it continues to be a leader in the domestic market with a share of 65.3% as against 56.3% in Q4FY21
Auto major Bajaj Auto on Thursday reported a Q1 standalone net profit of ₹1,061 crore, more than doubled from ₹528 crore in the corresponding quarter of the previous fiscal, owing to a low base. The company's revenue from operations rose nearly 140% to ₹7,386 crore as compared to ₹3,079 crore year-on-year (YoY).
However, the profit and revenue fell sequentially as the net profit in the previous quarter stood at ₹1,332 crore whereas the revenue at ₹8,596 crore.
The company said it continues to be a leader in the domestic market with a share of 65.3% as against 56.3% in Q4FY21. For Q1FY22, it sold over 1 million units in India and across the globe.
The company said that Q1FY22 has been a challenging quarter; the recovery over the past three quarters got undone with the second wave of COVID-19 which again led to restrictions and full or partial lockdowns. This resulted in weaker domestic demand, which was partially off-set with strong exports across all major geographies, it said in the earnings filing on the BSE.
''Lower revenue from operations resulted in loss on spread of fixed costs by ~160 bps. Also, increase in cost of raw-material, net of increase in prices, resulted in lower EBITDA margin,'' Bajaj Auto said. The mentioned was partially off-set from higher US$ realization and improved mix, it added.
As on 30th June 2021, Bajaj Auto's surplus cash and cash equivalents stood at ₹19,097 crore as against ₹17,689 crore as on 31st March 2021.
Shares of Bajaj Auto were trading over 2% higher at ₹3,990 per share on the BSE in Thursday's afternoon deals.
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