Homegrown domestic two- and three-wheeler major Bajaj Auto has reported record revenues of Rs 26,911 crore for FY2017-18. The 11 percent year-on-year growth can be attributed to handsome growth in two-wheeler exports and commercial vehicles in the domestic market.
The company also reported a record EBITDA margin of 20.2 percent, EBITDA of Rs 5,145 crore in FY2018, PAT of Rs 4,068 crore, which surpassed the Rs 4,000-crore mark for the first time. For Q4 FY2018, the revenue stood at Rs 7,140 crore, EBITDA margin at 20.9 percent, EBITDA Rs 1,431 crore and PAT of Rs 1,080 crore.
Bajaj Auto states the robust results have come due to sales of 3,369,334 motorcycles globally (+5%), consisting of 1,974,577 (-1%) units in the domestic market and 1,394,757 in exports (+14%). Exports grew by 18 percent and contributed more than one-third to the company’s growth volumes (+14%) from new/nascent markets. Motorcycle exports grew on the back of a strong recovery in Nigeria, focus on the sports bike segment in Latin America, especially Argentina, and new product launches in the Philippines and Malaysia. Export sales in value terms contributed Rs 9,073 crore, up 23 percent in FY2018.
The three-wheeler portfolio also saw record sales of 369,637 units, a growth of 46 percent over FY2017. Bajaj Auto claims to be the market leader in the petrol and alternate segment with a share of 89 percent, and claims to have a market share of 58 percent in FY2018.
For Bajaj Auto, the investment in KTM is paying of handsomely. The Austrian-based performance bike maker reported record sales of 238,408 units, up 17 percent. It reported turnover of Euro 1.31 billion (Rs 10,166 crore), PAT of Euro 78.9 million (Rs 603 crore), up 10 percent, helped Bajaj Auto to achieve the proportionate PAT of Rs 288 crore.