{"id":163155,"date":"2024-07-17T08:27:11","date_gmt":"2024-07-17T12:27:11","guid":{"rendered":"https:\/\/44.250.171.167\/?p=163155"},"modified":"2024-07-17T08:27:12","modified_gmt":"2024-07-17T12:27:12","slug":"bajaj-auto-limited-q1-fy25-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/bajaj-auto-limited-q1-fy25-earnings-conference-call-insights\/","title":{"rendered":"Bajaj Auto Limited Q1 FY25 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Bajaj Auto Limited (BAJAJ-AUTO) Q1 FY25 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Revenue from operations grew by 16% to nearly INR 12,000 crores.<\/li>\n<li>EBITDA reached 20.2%, crossing INR 2,400 crores with 24% growth.<\/li>\n<li>Third consecutive quarter of 20%+ EBITDA despite growing EV portfolio.<\/li>\n<li>Spares now constitute 11% of revenue.<\/li>\n<li>Financing penetration was 75% for motorcycles and 90% for three-wheelers.<\/li>\n<\/ul>\n<\/li>\n<li><strong>New Growth Platforms<\/strong>\n<ul>\n<li>Recently launched three new platforms: CNG bike, sub-one lakh electric Chetak, and new plant in Manaus, Brazil.<\/li>\n<li>These platforms provide access to new business opportunities.<\/li>\n<li>Alliance to target middleweight segment in India and overseas.<\/li>\n<li>Development of e-auto (e-three-wheeler) to enter restricted three-wheeler markets.<\/li>\n<li>Company plans to continue creating and scaling up growth platforms.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Export Market Challenges<\/strong>\n<ul>\n<li>Small but steady revival in overseas markets, with fewer countries in stress conditions.<\/li>\n<li>Africa continues to underperform, especially Nigeria, due to currency devaluation and inflation.<\/li>\n<li>Sales in Nigeria dropped from 50,000 per month benchmark to under 5,000 in April, recovering to 15,000 levels.<\/li>\n<li>Company down by 40% in Africa compared to Q1 of previous year.<\/li>\n<li>Positive growth in Middle East, North Africa, Asia, and Latin America markets.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Domestic Motorcycle Success<\/strong>\n<ul>\n<li>Strong position in 125cc+ segment, which became 51% of overall industry.<\/li>\n<li>Market share of 25% in top half of the industry, just 2% short of leadership.<\/li>\n<li>75% of sales coming from the top half, significantly impacting top and bottom lines.<\/li>\n<li>40% market share in 150cc+ segment driven by Pulsar portfolio makeover.<\/li>\n<li>Launch of biggest Pulsar, NS400Z, well-received with 2,400 unit bookings<\/li>\n<\/ul>\n<\/li>\n<li><strong>CNG Bike Innovation<\/strong>\n<ul>\n<li>Launched Freedom 125, world&#8217;s first CNG bike, to an enthusiastic reception.<\/li>\n<li>Offers 50% savings on fuel bill with dual fuel capability.<\/li>\n<li>Targets mileage-conscious customers in 100cc to 125cc segment.<\/li>\n<li>Addressable market of 450,000 to 500,000 customers per month.<\/li>\n<li>Phased launch starting with Maharashtra and Gujarat, expanding to Delhi and Kerala in Q2.<\/li>\n<li>Initial capacity of 10,000 units per month, scaling up to 40,000 per month by Q4.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Electric Portfolio Growth<\/strong>\n<ul>\n<li>Electric portfolio revenue in FY &#8217;24 was four times that of FY &#8217;23.<\/li>\n<li>14% of domestic revenue now contributed by electric portfolio, which includes both electric three-wheelers and electric two-wheelers.<\/li>\n<li>Company committed to investing for competitive growth in this space.<\/li>\n<li>Plans to expand electric business significantly in the future.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Commodity Cost Management<\/strong>\n<ul>\n<li>Slight uptick in costs for aluminum, copper, rubber, and noble metals.<\/li>\n<li>Relief from steel, nickel, lead, and palladium prices.<\/li>\n<li>Cost reduction efforts and balanced commodity basket kept material cost impact neutral.<\/li>\n<li>Pricing remained flat overall, with ICE portfolio increases offsetting electric portfolio reductions.<\/li>\n<li>Current outlook suggests potential inflation in costs for Q2, especially in aluminum and copper.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Future Business Priorities<\/strong>\n<ul>\n<li>Sustaining momentum in domestic business and winning in upcoming festive season.<\/li>\n<li>Recovering and increasing export volumes.<\/li>\n<li>Expanding capacity, capabilities, and network for new businesses and launches.<\/li>\n<li>Developing strategic growth enablers through wholly-owned subsidiaries.<\/li>\n<li>Managing P&amp;L dynamically in the context of rising commodity costs.<\/li>\n<li>Potential investments in building new businesses while sustaining margins<\/li>\n<\/ul>\n<\/li>\n<li><strong>EV Revenue Breakdown<\/strong>\n<ul>\n<li>14% of Bajaj Auto&#8217;s domestic revenues come from the electric portfolio.<\/li>\n<li>Electric two-wheelers contribute 60% of the EV revenues.<\/li>\n<li>Electric three-wheelers make up the remaining 40% of EV revenues.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Industry Outlook<\/strong>\n<ul>\n<li>The overall two-wheeler industry is expected to grow by 6% to 8%.<\/li>\n<li>The 125cc+ segment is anticipated to grow faster than the industry average.<\/li>\n<li>Bajaj Auto aims to outpace industry growth in the premium segment.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capex Guidance<\/strong>\n<ul>\n<li>Bajaj Auto expects capex to be in the range of INR 700-800 crores for FY25.<\/li>\n<li>A significant portion will go towards commissioning a new electric three-wheeler facility in Bharuch.<\/li>\n<li>The investment also includes building capabilities for the electric vehicle segment.<\/li>\n<\/ul>\n<\/li>\n<li><strong>CNG Motorcycle Launch<\/strong>\n<ul>\n<li>CNG is available in 335 out of 500 top towns, accounting for 70% of the market.<\/li>\n<li>CNG station density varies significantly across locations.<\/li>\n<li>Initial bookings are around 4,200, with 90% from Maharashtra and Gujarat.<\/li>\n<li>Majority of bookings are for the top-end model.<\/li>\n<li>Customer demographics are diverse, indicating broad appeal.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Freedom 125 Capacity\/Expectations<\/strong>\n<ul>\n<li>The addressable market is about 400,000 to 500,000 units per month.<\/li>\n<li>Current capacity target is 40,000 units by year-end.<\/li>\n<li>The company is cautious about expanding capacity before assessing adoption rates.<\/li>\n<li>Substantial capacity expansion is possible with a six-month runway.<\/li>\n<li>Bajaj aims for a respectable market share in the bottom half segment.<\/li>\n<li>The company targets a 25% market share in the top half segment.<\/li>\n<li>Bajaj hopes to achieve a 40-50% market share by upgrading customers to the 125cc segment.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Market Segmentation Trends<\/strong>\n<ul>\n<li>The 150cc to 250cc category has shown recent growth after a period of shrinkage.<\/li>\n<li>Bajaj&#8217;s new N 250 model sold over 1,000 units in the previous month.<\/li>\n<li>There&#8217;s no significant evidence of down-trading from 350cc-400cc to 160cc segments.<\/li>\n<li>Within-brand migration to lower-priced variants may occur if products are very similar.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Bajaj Auto Limited (BAJAJ-AUTO) Q1 FY25 Earnings Concall Financial Performance Revenue from operations grew by 16% to nearly INR 12,000 crores. EBITDA reached 20.2%, crossing INR 2,400 crores with 24% growth. Third consecutive quarter of 20%+ EBITDA despite growing EV portfolio. Spares now constitute 11% of revenue. Financing penetration was 75% for [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":162998,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392],"tags":[80,10169,8575],"class_list":["post-163155","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","tag-automobile","tag-earnings","tag-motorcycle"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":125223,"url":"https:\/\/alphastreet.com\/india\/key-highlights-from-bajaj-autos-q2-2022-earnings-results\/","url_meta":{"origin":163155,"position":0},"title":"Key highlights from Bajaj Auto&#8217;s Q2 2022 earnings results","author":"Nishadkishore","date":"October 27, 2021","format":false,"excerpt":"Bajaj Auto (NSE: BAJAJ-AUTO) reported its Q2 2022 results after the closing bell today. The company had net revenue of \u20b99,080 crores with a growth of 22% compared to the previous year. Bajaj Auto had a net profit of \u20b92,040 crores or \u20b970.5 per share compared to \u20b91,194 crores or\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":170112,"url":"https:\/\/alphastreet.com\/india\/bajaj-auto-q1-fy26-earnings-results\/","url_meta":{"origin":163155,"position":1},"title":"Bajaj-Auto Q1 FY26 Earnings Results","author":"Divyansh_Kasana","date":"August 13, 2025","format":false,"excerpt":"Bajaj Auto Limited, the flagship company of the Bajaj Group, is a leading manufacturer of two-wheelers and three-wheelers with exports to 79 countries across Latin America, Southeast Asia, and other key international markets. Headquartered in Pune, India, the company also holds a 48% stake in KTM, a premium sports and\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"BAJAJ-AUTO Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/BAJAJ.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/BAJAJ.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/BAJAJ.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/BAJAJ.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/BAJAJ.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/BAJAJ.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":134790,"url":"https:\/\/alphastreet.com\/india\/bajaj-auto-limited-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":163155,"position":2},"title":"Bajaj Auto Limited Q2 FY23 Earnings Conference Call Insights","author":"Praveen","date":"October 17, 2022","format":false,"excerpt":"Key highlights from Bajaj Auto Limited (BAJAJAUTO) Q2 FY23 Earnings Concall Q&A Highlights: [00:23:06] Amyn Pirani of JPMorgan asked about other operating income being strong despite export volumes being lower. 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But the way it gets accounted for and\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":126467,"url":"https:\/\/alphastreet.com\/india\/earnings-update-bajaj-auto-reports-its-q3-results\/","url_meta":{"origin":163155,"position":3},"title":"Earnings Update: Bajaj Auto reports its Q3 results","author":"Nishad","date":"January 19, 2022","format":false,"excerpt":"Bajaj Auto Limited\u00a0(NSE: BAJAJ-AUTO)\u00a0reported its Q3 2022 results after the closing bell today. 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Its headquarter is in Pune, India.It has acquired 48% of the KTM Brand which manufactures sports and super sports\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-194.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-194.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-194.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-194.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-194.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-194.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":155072,"url":"https:\/\/alphastreet.com\/india\/bajaj-auto-ltd-q2fy24-18-rise-in-profits\/","url_meta":{"origin":163155,"position":5},"title":"Bajaj Auto Ltd Q2FY24; 18% rise in Profits","author":"Divyansh_Kasana","date":"October 19, 2023","format":false,"excerpt":"Bajaj Auto, the flagship company of Bajaj Group, is a two-wheeler and three-wheeler manufacturing company that exports to 79 countries across several countries in Latin America, Southeast Asia, and many more. 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