With a resilient business model, robust financials, and strategic initiatives, the Bajaj Auto Limited is well-positioned to achieve new milestones in the coming years.
NEW DELHI (India CSR): Bajaj Auto Limited has once again demonstrated its prowess in the automotive industry, delivering outstanding financial results for the fiscal year 2023-24. The company’s 17th Annual Report highlights significant achievements across various segments, showcasing a year of resilient, competitive, and profitable growth. Here are the key highlights from this remarkable year.
Chairman Niraj Bajaj expressed confidence in the company’s ability to deliver another strong performance in FY2025, thanks to the passionate and capable team led by Managing Director Rajiv Bajaj. The support and trust of shareholders remain crucial to the company’s continued success.
“Given the state of the business and with such a passionate team that is capable of making a difference, I have absolute confidence that your Company is well placed to deliver yet another big year in FY2025. I would like to thank you, our shareholders, for your support and continued trust. We appreciate it greatly.” Niraj Bajaj
Chairman said in his message to stakeholders.
Record-Breaking Financial Metrics
The financial performance of Bajaj Auto Limited in FY2024 reached unprecedented heights, setting new benchmarks in revenue, profit, and cash generation.
Revenue and EBITDA Growth
Bajaj Auto’s revenue soared to an all-time high of ₹44,685 crores, marking a substantial 23% year-on-year increase. This impressive growth was fueled by record sales of both vehicles and spares. EBITDA also reached a historic peak at ₹8,825 crores, reflecting a robust 35% growth over the previous year. The EBITDA margin improved significantly, reaching 19.7%, up by 180 basis points from the previous year.
Profit and Cash Flow
The company recorded its highest-ever Profit Before Tax (PBT) at ₹9,822 crores and Profit After Tax (PAT) at ₹7,479 crores, both showing a 33% increase over the previous year. Bajaj Auto’s strong cash generation continued, with Free Cash Flow reaching ₹6,600 crores, up 45% compared to the previous year.
Consistent Quarterly Growth
One of the standout features of Bajaj Auto’s performance was the consistency of growth across all quarters. This consistent growth highlights the resilience of the company’s business model, where strong domestic performance more than compensated for muted exports due to challenging overseas market conditions.
Strong Balance Sheet
As of 31 March 2024, Bajaj Auto’s balance sheet remained robust, with surplus cash and cash equivalents amounting to ₹16,386 crores. This strong financial position was achieved after making capital investments of approximately ₹800 crores and returning ₹8,900 crores to shareholders through dividends and share buybacks. This financial strength enables the company to invest in its competitive and sustainable future growth while rewarding shareholders.
Domestic Market Performance
Bajaj Auto’s domestic business delivered its largest revenue, driven by sustained momentum and robust volume-led growth across all segments.
Motorcycle Sales and Premiumization
Domestic motorcycle sales by volume grew by 20% in FY2024, with the Pulsar emerging as the largest player in the 125cc+ segment. The company’s growth in this segment was eight times that of the rest of the industry, driven by the trend of premiumization.
KTM and Triumph Success
KTM achieved its best-ever sales, while the introduction of Triumph added strength to the premium portfolio, delivering over 40,000 units in just eight months. The Speed 400 and Scrambler 400X models were made available across 56 cities domestically and 16 export markets.
Electric Scooters and Commercial Vehicles
Chetak electric scooters delivered strong results, with sales tripling to over 115,000 units, climbing to the #3 position in the industry. Domestic sales of commercial vehicles also surged, achieving historic high volumes and leading the electric three-wheeler segment in early launch cities.
Export Market Challenges and Adaptation
Despite challenging macro-economic conditions in key export markets, Bajaj Auto managed to navigate currency constraints and market volatility. Robust growth in Latin American markets and the Middle East partially offset the slowdown in Africa and Asia, resulting in flat overall revenue for the export segment.
Outlook for FY2025
Looking ahead, India, the fastest-growing economy globally, is anticipated to achieve upwards of 7% real GDP growth in FY2024, with forecasts indicating continued buoyancy in FY2025. Bajaj Auto aims to sustain its growth momentum in the domestic market, recover export volumes, and drive innovation and superior customer experience.
Strategic Growth Initiatives
Bajaj Auto’s strategic priorities include expanding capacity and network for new businesses such as Chetak electric scooters, electric three-wheelers, and Triumph motorcycles. The company will also focus on developing its wholly-owned subsidiaries, Chetak Technology Limited and Bajaj Auto Credit Limited, to drive future growth.
(India CSR)
