Bajaj Auto’s Q4 jumps on incentives from Maharashtra Government

Bajaj Auto reported a 10 percent growth in its net profit for Q4FY22 at Rs 1,469 crore in comparison to Rs 1,332 crore during the same period last year primarily on account of an exceptional earnings items of Rs 315 crore received from the Maharashtra Government as part of an incentive scheme. 

However, revenues from operations fell by about 7 percent to Rs 7,975 crore as against Rs 8596 crore as the company continues to face severe supply chain challenges leading to lower sales of vehicles. Retail sentiment in the entry level segment has not picked up either. The company's management said that share of motorcycles sold in the domestic market improved marginally to 18.2 percent. Domestic Commercial Vehicle (CV) business, on other hand, recorded a growth of 47 percent as against industry growth of 21 percent. As a result, the company’s share in the domestic market stands at 62 percent, an improvement of 10.9 percent over FY21. 

International business, however, recorded its highest ever sales of over 2.5 million vehicles for FY22. With sales of over $2 billion, exports now contribute over 52 percent of its net sales. The company's export portfolio accounts for nearly 52 percent of its total sales with 125 cc plus motorcycles forming close to 28 percent of it. 

Bajaj Auto which is the second largest motorcycle manufacturer and largest three-wheeler manufacturer in the country commands a market share of around 18 percent and 50 percent respectively.