Bajaj, TVS vroom to record profits in Q3
₹12,114 crore in Q3FY24, with a handsome growth in the sales of the company’s best-selling brand in the 125cc and above segment, the Pulsar, driving profits up 37% year-on-year to ₹2,042 crore and Ebitda (earnings before interest, taxes, depreciation and amortization) margins to 20.1%, an improvement of 98 basis points over the third quarter last fiscal. A hundred basis points make one percentage point. For TVS Motor Company, revenue in the December quarter rose 26% on year to ₹8,245 crore, while its net profit grew 68% to ₹593.35 crore.
Its Ebitda margin rose to 11.2%, making December the third consecutive quarter of record-high operating income for the Chennai-based two-wheeler maker. Total sales, including exports and three-wheelers, for Bajaj Auto were up 22% to 12 lakh units. For TVS Motor Company, total sales increased 25% to 11 lakh units in the three-month period ended 31 December.
While the festive season and marriage-season-related buying lifted sales in the entry-level segment of motorcycles and scooters in Q3, Bajaj Auto expects the category (of motorcycles in the under 110cc segment) to keep losing lustre in the future. “A rising tide lifts all boats and so it has happened with the entry level (100cc and below). But it is a segment that will grow the least.
Its share of the industry will continuously erode. That is the trend we are seeing," Rakesh Sharma, executive director, Bajaj Auto, told Mint. “It eroded faster during the Covid time because there the customer was more fragile and more vulnerable.
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