Bajaj Auto’s Q2 standalone profit jumps 24% to ₹2,480 crore amid robust exports

Two-wheeler manufacturer Bajaj Auto said on Friday that its standalone profit jumped 24% to ₹2,480 crore, buoyed by a robust export volume for both its two- and three-wheelers, which increased 24% year-on-year and 16% sequentially.

It reported revenue from operations of 14,922 crore in the quarter under review, up 14% from the year-ago period. It exported 4,72,411 two-wheelers in the three months ended September 30, a 19% jump from the same quarter last year. Commercial vehicles, on the other hand, saw a jump of 67% year-on-year to 80,916 units.

In May, Bajaj Auto took control of the Austria-headquartered KTM in a ₹7,778 crore deal. The revival of the KTM brand was critical for Bajaj to accelerate the KTM business, which is run out of India under the joint development programme, where it develops, makes, and sells in India as well as exports to 80 countries across the KTM network. Bajaj also aims to revitalise KTM’s operations while addressing liquidity challenges and restructuring debt.

Exports are critical to Bajaj Auto—which exports to countries such as Vietnam, Nigeria, and Brazil, as well as to Latin America—amid a sluggish domestic market. It should be noted that the results for the quarter under review do not include sales made after the GST rates for two-wheelers were revised, which came into effect on September 22.

Bajaj Auto’s domestic sales of two-wheelers were down 6% year-on-year to 5,96,576 units. The decline in domestic two-wheeler sales dragged overall domestic sales down to 5% from the year-ago period, to 7,40,793 units. However, overall, two-wheeler sales increased by 3% to 10,68,987 units, primarily due to a jump in exports. Including three-wheelers, the total volumes increased 6% to 12,94,120 units in the second quarter.

In October, however, when the revised GST rates came into effect—along with the festive season—domestic sales for Bajaj Auto only rose by 4% to 2,66,470 units. Commercial vehicles, on the other hand, declined by 1% from the year-ago period to 47,678 units. Exports in the month, however, increased 11% 1,75,846 units and jumped 62% to 28,176 units for commercial vehicles.

Bajaj Auto shares closed 0.04% lower on Friday at ₹8,717 apiece.