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View Promises →Bajaj Auto Ltd — Q2 FY25
Bajaj Auto delivered a record quarter with revenue of INR 13,000 crore (+22% YoY) and EBITDA of INR 2,653 crore (+24% YoY), marking the fourth consecutive quarter of 20%+ EBITDA margin.
bullish
high
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2-Minute Summary
✦ AI-Generated from Full Transcript
Bajaj Auto delivered a record quarter with revenue of INR 13,000 crore (+22% YoY) and EBITDA of INR 2,653 crore (+24% YoY), marking the fourth consecutive quarter of 20%+ EBITDA margin. Growth was driven by strong domestic performance (EV portfolio now 20% of domestic revenue) and export recovery, particularly in LatAm. The Freedom 125 CNG motorcycle is scaling rapidly, with capacity planned to reach 40,000/month by Q4. The EV portfolio (e-2W + e-3W) achieved EBITDA breakeven in absolute terms. However, consolidated PAT was impacted by a INR 580 crore loss from associate Pierer Mobility. Management remains optimistic about continued top-line growth and margin sustainability, though festive season demand has been muted. Key risk: sustained weakness in African markets and potential further losses from Pierer Mobility.
बजाज ऑटो ने इस तिमाही में ₹13,000 करोड़ का रिकॉर्ड कारोबार किया, जो पिछले साल से 22% ज़्यादा है। कंपनी की कमाई (EBITDA) ₹2,653 करोड़ रही, जो 24% बढ़ी। लगातार चौथी तिमाही में 20% से अधिक मुनाफा कमाया। भारत में इलेक्ट्रिक वाहनों (EV) की बिक्री बढ़ी, जो अब कुल घरेलू कारोबार का 20% है। लैटिन अमेरिका में निर्यात भी सुधरा। फ्रीडम 125 CNG बाइक की मांग बढ़ रही है, मार्च तक 40,000 बाइक रोज़ बनाने की योजना है। EV कारोबार ने पहली बार खुद का खर्च निकाल लिया है। हालांकि, पियरर मोबिलिटी में नुकसान से कंपनी का कुल मुनाफा ₹580 करोड़ घटा। प्रबंधन को आगे भी अच्छी बिक्री और मुनाफा बने रहने की उम्मीद है, लेकिन त्योहारी सीज़न में मांग कम रही। अफ्रीका में कमज़ोरी और पियरर का नुकसान बड़ा जोखिम है।
Promises0 met · 3 missedRisks4 tracked
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Focused Modules
Risks
4 risks
Risk Intelligence
Sustained weakness in African markets
View Risks →Quarter Snapshot
Chetak market share
19%
+9pp YoY
Chetak's market share in e-2W doubled from ~10% in Q2 FY24 to 19% in Q2 FY25.
Freedom 125 retail sales (October)
18,000+
+80% MoM
Freedom 125 retailed over 10,000 units by September; October expected to exceed 18,000 units.
e-3W market share
35%
near leadership
Bajaj's e-auto market share reached 35%, just shy of leadership, with presence in 700+ locations.
Exports revenue
$415M
+10%+ QoQ
Exports revenue of ~$415 million in Q2, with LatAm delivering record performance and 20%+ growth.
What Changed vs Last Quarter
NEW
Chetak distribution to expand to 4,000 stores by January 2025
Chetak will be available in about 4,000 stores by January, up from ~3,000 currently, supported by 250 exclusive stores.
NEW
BACL to achieve 100% network coverage by January 2025
Captive finance arm BACL will cover 100% of Bajaj Auto's market share by January 2025, up from 70%+ currently.
NEW
Brazil plant capacity to expand to 35,000 units annually by FY26
Board approved additional investment to expand Brazil plant capacity from 20,000 to 35,000 units per annum by FY2026.
UPDATED
Freedom 125 capacity to reach 40,000/month by Q4 FY25
Management plans to increase Freedom 125 production capacity to 30,000/month in Q3 and 40,000/month in Q4, driven by strong customer adoption.
DROPPED
Chetak EV distribution expansion to 1,000 stores by September 2024
Chetak will expand from 250 stores in June to 500 by end July and nearly 1,000 by September, driving volume growth.
DROPPED
Commodity cost inflation of 50-70bps in Q2, partially offset by pricing
Management expects 50-70bps cost inflation from commodities, with pricing actions covering about half of the impact.
DROPPED
BACL captive financing to cover 100% of stores by March 2025
Bajaj Auto Credit Ltd (BACL) currently covers 50% of stores and is on track to reach full coverage by March 2025.
NEW RISK
Sustained weakness in African markets
Africa continues to decline across major markets, though decline rates have reduced. Nigeria recovery is fragile due to currency volatility.
NEW RISK
Pierer Mobility losses may persist
Associate Pierer Mobility reported a loss of EUR 172 million in H1 2024, leading to a INR 580 crore hit on consolidated PAT. Management declined to provide forward guidance on this.
NEW RISK
Festive season demand below expectations
Motorcycle industry growth during festive season has been muted at 1-2%, below the expected 5-6%, with 100cc segment declining.
NEW RISK
EV pricing pressure and discounting
Significant discounting in the EV two-wheeler market could pressure Chetak margins, even as cost reductions are achieved.
RISK GONE
Commodity cost inflation pressure
Rising aluminum and copper prices could impact margins by 50-70bps in Q2; pricing actions only partially offset.
RISK GONE
Nigeria demand recovery remains weak
Nigeria volumes dropped from 50,000/month benchmark to under 5,000 in April, recovering to only 15,000; Africa sales down 40% YoY.
RISK GONE
EV two-wheeler profitability drag persists
Chetak remains loss-making despite cost reductions; management declined to disclose specific margin, indicating profitability is still distant.
RISK GONE
Premium motorcycle segment slowdown
Analyst noted lackluster demand in the 250-500cc segment despite multiple launches; management acknowledged the trend but offered no specific mitigation.
🤫 Topics management stopped discussing
Mentioned in Q1 FY24, Q2 FY24, Q3 FY24
Nigeria volumes remain at 40-50% of peak due to currency devaluation and macroeconomic challenges, with no quick fix in sight.
Mentioned in Q1 FY24, Q2 FY24, Q4 FY24
Production capacity for Triumph motorcycles will be ramped up to 10,000 units per month in H1 FY25.
Mentioned in Q2 FY24, Q3 FY24
Management targets to reach 15,000 units per month in Q4, up from ~10,000 exit rate in December.
Mentioned in Q2 FY24, Q3 FY24
Management noted uptick in costs for ABS, zinc, polypropylene, copper, and rubber, which could pressure margins.
Mentioned in Q1 FY25, Q4 FY24
Chetak remains loss-making despite cost reductions; management declined to disclose specific margin, indicating profitability is still distant.
Fast read
Guidance and risk preview
Management plans to increase Freedom 125 production capacity to 30,000/month in Q3 and 40,000/month in Q4, driven by strong customer adoption.
Africa continues to decline across major markets, though decline rates have reduced.
View Risks →