Bajaj Auto on Wednesday said its consolidated net profit increased 17.51 per cent to Rs 2,020 crore for the September quarter with robust domestic performance driving record revenue.
The Pune-based company had reported a consolidated net profit of Rs 1,719 crore in the year-ago period.
Total income increased to Rs 11,207 crore for the second quarter of the current fiscal from Rs 10,537 crore a year ago, Bajaj Auto said in a regulatory filing.
Bajaj Auto said its revenue from operations registered a new high of Rs 10,777 crore, up 6 per cent year-on-year (YoY).
In terms of volume, Bajaj said it sold a total of 10,53,953 units in the quarter under review, down 8 per cent from 11,51,012 units in the year-ago period.
Two-wheeler sales in the domestic market were down 19 per cent to 5,05,320 units in Q2 as compared to 6,21,134 units in the year-ago period, while exports were at 3,76,263 units as against 3,97,900 units last year, down 5 per cent.
Total three-wheeler sales were at 1,72,370 units in the quarter under review as against 1,31,978 units in the corresponding period a year ago, up 31 per cent.
In the domestic market, the company said it clocked its highest-ever quarterly sales at 1,32,236 units as against 73,241 units last year, registering an increase of 81 per cent.
Addressing reporters in a virtual earnings call, Bajaj Auto Executive Director Rakesh Sharma said the company has been able to deliver "record breaking" performance in the midst of difficult international trading conditions.
He said the drop in volumes of two-wheelers was due to the high base effect of the corresponding period last fiscal.
Led by strong performance in the 125cc and above motorcycle segment, Sharma said Bajaj Auto has been able to increase its market share, which, along with better product mix, resulted in better revenue realisation.
The domestic business registered a new peak, on the back of six successive quarters of double-digit growth, he added.
On the company's electric two-wheeler brand Chetak, Sharma said after sorting out supply chain issues since March-April this year, Bajaj Auto has been able to increase its market share in the electric two-wheeler segment to 11 per cent in Q2, up from 3 per cent in FY23.
The portfolio of the brand would also be expanded, he said, adding that the sales network of Chetak is present in 120 cities as against 90 in the previous quarter.
Asked about the penetration of electric two-wheelers, he said it is at around 5 per cent of the overall two-wheeler industry and in the September quarter, it has been "stuck" at monthly sales of about 65,000 units due to increase in prices after the reduction in FAME II subsidy.
It has led to consolidation with the top-five players commanding 75 per cent of the market as compared to 50 per cent earlier and the bottom players have been weakened and severely hit.
Sharma said one needs to wait and see how electric two-wheelers will grow in future as it will depend on the continuation or changes in the FAME scheme.
Commenting on the performance of premium bike Triumph, he said it has been received extremely well in the market with the model clocking 8,000 units in the first one and half months of deliveries since August.
Bajaj Auto will increase monthly production of the model to 10,000 units by the fourth quarter of FY24, up from 7,000 units currently.
The company is also planning to start exports of Triumph bikes in the third quarter, while work on taking the brand experience to over 100 cities by the year end is on track from 26 currently, he added.
Asked about the company's new launches, Sharma said there will be six upgrades and new launches in the 125 cc and above segment in the next four to five months starting after Diwali.
On exports, he said a slow and steady recovery is expected considering the current global geopolitical situation and the difficulties in the financial system.
Bajaj Auto said it sustained strong cash generation by adding over Rs 3,600 crore of free cash flow in the first half of the current fiscal.
Shares of the company ended marginally up at 5,143.80 apiece on the BSE on Wednesday.