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Bajaj Auto Q4 Results: Profit And Revenue Fall, Margin Contracts On Weak Domestic Demand

Net profit of the Pune-based two-wheeler maker fell 1.62% over the year ago to Rs 1,526.16 crore in the quarter ended March.

<div class="paragraphs"><p>An employee works on the assembly line at the Bajaj Auto Ltd. plant in Chakan, India. (Photographer: Adeel Halim/Bloomberg)</p></div>
An employee works on the assembly line at the Bajaj Auto Ltd. plant in Chakan, India. (Photographer: Adeel Halim/Bloomberg)

Bajaj Auto Ltd.’s quarterly profit fell on poor domestic demand for two-wheelers. Still, the earnings beat estimates.

Net profit of the Pune-based two-wheeler maker fell 1.62% over the year earlier to Rs 1,526.16 crore in the three months through March, according to its exchange filing. That compares with the Rs 1,203.7-crore consensus estimate of analysts tracked by Bloomberg.

Bajaj Auto Q4 FY22 Highlights (YoY)

  • Revenue fell 11.34% to Rs 7,974.84 crore, against the Rs 7,621.3-crore forecast.

  • Operating profit, or earnings before interest, tax, depreciation and amortisation, was down 26.10% to Rs 1,360.68 crore. That compares with the Rs 1,124.6-crore estimate.

  • Operating margin stood at 17.06% against 17.7% a year ago.

Bajaj Auto’s overall sales increased 8% over the last fiscal in FY22. That was mainly aided by exports, which rose 22% to 25.06 lakh units. Its domestic sales fell 6% to 18.01 lakh units during the fiscal.

In fourth quarter, the company sold 3,89,155 units domestically, 27% lower than the year-ago period. Exports also fell 8% in the quarter.

"The company continues to face severe supply-chain challenges, especially in Q4 FY22, impacting sales of motorcycles and commercial vehicles," the filing said.

Two-wheeler demand in India remained stressed as affordability took a hit in the last two years. That’s on account of increased cost of vehicles amid the transition to stricter emission standards, price hikes due to escalating input costs, costlier fuel and dented purchasing power due to the pandemic.

Shares of Bajaj Auto closed 0.35% higher before the results were announced compared with a 0.94% decline in the benchmark Nifty 50.