Tag Archives: earnings

Bajaj Auto Reports 9% Net Profit Growth in Q2 FY25, Driven by Strong EV Sales

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Bajaj Auto on Wednesday announced a 9% rise in net profit for the July-September quarter (Q2 FY25), posting a net income of Rs 2,005 crore, driven by robust performance in its green energy segment. The company’s electric vehicle (EV) sales surged, contributing significantly to its overall growth.

Adjusted for exceptional deferred tax provisions, Bajaj Auto’s profit after tax (PAT) reached Rs 2,216 crore, marking a 21% year-on-year increase. The company explained that the reported PAT of Rs 2,005 crore accounted for an additional provision of Rs 211 crore due to the impact of the Finance Act, 2024, which withdrew indexation and changed tax rates on investment income.

Revenue from operations grew 22% year-on-year, hitting Rs 13,000 crore for the quarter. Bajaj Auto’s stock responded positively, closing 0.88% higher at Rs 11,622.5 per share on Wednesday.

Electric Vehicles Lead the Charge

Bajaj Auto’s green energy portfolio hit new milestones, with the sale of 1 lakh electric vehicles (EVs) in September alone. Of these, 70,000 were Chetak electric scooters, which captured a 21% market share that month. The company’s portfolio of electric and CNG vehicles, spanning both two-wheelers (2W) and three-wheelers (3W), now contributes 40% of its total domestic revenues.

The company noted strong double-digit growth in its motorcycle and commercial vehicle segments, largely fueled by the near-tripling of electric scooter sales. The Pulsar brand continued to perform well, achieving its highest-ever quarterly sales of 1.1 lakh units.

Future Prospects

Bajaj Auto is also making strides in the electric three-wheeler (e3W) market, where it aims to replicate its dominance in the internal combustion engine (ICE) segment. The company reported that its market share in the e3W segment doubled from last year, reaching 35% by the end of the quarter.

The company remains in a strong financial position, with surplus cash reserves of Rs 16,392 crore at the end of Q2. This follows strategic investments of Rs 1,200 crore, primarily directed towards Bajaj Auto Credit Ltd. and EV-related capital expenditures, as well as a Rs 2,233 crore dividend payout in the first half of FY25.

With growing demand for electric vehicles and a strong financial base, Bajaj Auto is well-positioned to capitalize on the expanding green energy market and continue its upward trajectory.

BharatPe Group Reports Rs 209 Crore EBITDA Loss in FY24, Marks Key Turnaround

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Fintech firm BharatPe Group announced its financial results for FY 2023-24 on Wednesday, revealing a consolidated EBITDA loss (before share-based payment expense) of Rs 209 crore for the fiscal year. While still in the red, the company has significantly narrowed its losses compared to the Rs 826 crore EBITDA loss it posted in FY 2022-23, signaling a positive shift in its financial performance.

According to BharatPe, its revenue from operations saw a robust 39% year-on-year (YoY) growth, rising from Rs 1,029 crore in FY23 to Rs 1,426 crore in FY24. Additionally, the company managed to halve its consolidated loss before tax, which dropped from Rs 941 crore in FY23 to Rs 474 crore in FY24.

BharatPe’s growth was particularly notable in its merchant lending business. The company’s average merchant lending portfolio, fueled by loans originating through its platform, grew by 40% compared to the previous year. This growth underscores BharatPe’s expanding role in providing credit access to small and medium-sized businesses, a key driver of its business strategy.

The company also highlighted strong demand for its soundbox devices, a key product in BharatPe’s offerings that has gained significant traction in the market during FY24.

Reduced Cash Burn and Turn to Profitability

BharatPe reported a sharp reduction in its cash burn, cutting it by 85% on a YoY basis. This improved cash management, along with other operational efficiencies, played a crucial role in moving the company closer to profitability.

In a major milestone, BharatPe turned EBITDA positive in October 2024, marking a significant achievement for the fintech firm. Commenting on the financial performance, BharatPe CEO Nalin Negi said, “FY24 was a milestone year for us as BharatPe turned EBITDA positive. We also considerably reduced our cash burn, positioning ourselves to build a sustainable and profitable business.”

Negi attributed the company’s progress to strategic partnerships with financial institutions, which have expanded BharatPe’s lending capabilities. “We have been able to partner with renowned financial institutions to extend credit access to merchants, validating our business model,” Negi added.

New Focus Areas and Future Outlook

BharatPe continues to diversify its product offerings and strengthen its position in the competitive fintech landscape. Negi outlined the company’s future plans, which include expanding its lending vertical, launching new products across POS (point-of-sale) solutions, and scaling its soundbox devices. BharatPe is also ramping up efforts in its consumer payments vertical, further diversifying its revenue streams.

In line with this strategy, BharatPe rebranded its PostPe app, transitioning it into the broader BharatPe ecosystem, signaling its entry into the consumer payments space. This move represents the company’s intent to build a more integrated and user-centric financial platform.

Funding and Investor Backing

BharatPe has successfully raised over $583 million in equity to date, with backing from several prominent global investors. These include Peak XV Partners (formerly Sequoia Capital India), Ribbit Capital, Insight Partners, Amplo, Beenext, Coatue Management, Dragoneer Investment Group, Steadfast Capital, Steadview Capital, and Tiger Global.

The company’s robust funding and investor support reflect confidence in BharatPe’s business model and growth potential. With a focus on sustainable growth, the fintech firm aims to consolidate its position in the fast-growing Indian digital payments and lending market.

As BharatPe continues to drive innovation and expand its offerings, the company is on track to further strengthen its financial performance, setting the stage for sustained growth and profitability in the coming years.