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Bajaj Auto Q1 FY25 Results Conference Call Summary
Overview • Date of Call: July 16, 2024 • Document submitted to: BSE Limited and National Stock Exchange of India • Key Executives Present: Rakesh Sharma (Executive Director), Dinesh Thapar (CFO)
Financial Highlights • Revenue Growth: • 16% increase to nearly INR 12,000 crores • Record spare parts sales contributing 11% of revenues • EBITDA: • Increased by 24% to over INR 2,400 crores • Third consecutive quarter of over 20% EBITDA • Cash Reserves: • INR 16,700 crores
Business Performance • Domestic and Export Sales: • Strong performance despite challenges in overseas markets, particularly Africa • Growth in Middle East, Asia, and Latin America • New Products and Initiatives: • Launch of CNG bike and sub-1 lakh electric Chetak • New plant in Brazil to enhance production capabilities • Market Position: • 78% market share in the three-wheeler segment • Strong position in the 125cc motorcycle segment
Electric Vehicle Strategy • Chetak Electric Scooter: • Increased market share due to price reductions and expanded distribution • Electric Three-Wheelers: • Approximately 3,000 electric three-wheelers in portfolio (9-10% of offerings) • Focus on expanding into markets with regulatory challenges for CNG vehicles
Triumph Motorcycles • Sales Performance: • Over 60,000 bikes sold across 57 countries, generating INR 1,200 crores in revenue • Expansion Plans: • Targeting 150 domestic stores and enhancing brand development
Cost Management and Profitability • Commodity Prices: • Mixed trends, but overall material costs remained neutral • Profitability of Electric Vehicles: • Electric two-wheelers still face challenges; profitability expected to improve with cost reductions and PLI benefits
Future Outlook • Growth Projections: • Anticipated continued growth in Q2 • Capital expenditure guidance for FY '25 estimated between INR 700 to 800 crores • Market Dynamics: • Projected industry volume growth of 6% to 8% • Focus on maintaining domestic momentum and recovering export volumes
Q&A Highlights • Electric Two-Wheelers: • Chetak's growth attributed to unique features and pricing strategies • Market Share Concerns: • Slight loss in entry-level segment but gaining share in higher-end market • Staff Costs: • Normal increments and staffing increases reported
Conclusion • Bajaj Auto remains optimistic about future growth, with multiple new platforms for expansion and a focus on electric vehicle development.
Bajaj Auto Limited Q4-FY24 Results Conference Call Summary
Conference Call Details • Date: April 18, 2024 • Transcript submitted to BSE and NSE on April 25, 2024 • Key Executives: Rakesh Sharma (Executive Director), Dinesh Thapar (CFO), Rajiv Gandhi (Company Secretary)
Financial Highlights • Record achievements in FY '24: • Highest-ever revenue, EBITDA, PAT, and free cash flow • Q4 performance: 24% volume growth, 29% revenue growth • Full-year revenue: Nearly INR 45,000 crores • Profit after tax: INR 7,500 crores (33% increase) • Dividend announced: INR 80 per share • Buyback completed: Nearly INR 9,000 crores
Business Performance • Domestic market growth, especially in the 125cc motorcycle segment • Electric scooter segment (Chetak) sales: Nearly 40,000 units, market share increased from 5% to 13% • Export volumes rose 20% despite challenges
Strategic Focus • Emphasis on top-line growth while maintaining profitability • Cautious approach to stressed export markets; aggressive strategy in recovering markets • Plans to expand in Brazil, Europe, and enter the Egyptian market with the Qute quadricycle • New product launches planned, including a CNG bike
Electric Vehicle (EV) Strategy • Focus on expanding EV offerings, particularly in the 3-wheeler segment • Chetak electric scooter to grow through network expansion • Captive finance company (BACL) to support growth and financing
Market Outlook • Anticipated growth in the electric two-wheeler segment despite decreasing subsidies • Positive consumer sentiment driving EV adoption due to cost savings • Plans for product portfolio expansion in the second half of FY '25
Q&A Highlights • PLI certifications received for electric three-wheelers and Chetak scooters • Historical performance in the Egyptian market discussed • Commodity cost challenges acknowledged, with slight price adjustments made • Profitability of electric two-wheelers still developing; electric three-wheelers now profitable • Financing coverage goals: 100% by year-end for Bajaj's financing business
Innovation and Technology • Emphasis on LFP technology for 2-wheelers as a competitive advantage • Establishment of Chetak Technology Limited to drive EV and non-EV product development
Conclusion • Bajaj Auto is well-positioned for growth, leveraging market opportunities while maintaining a strong financial position and commitment to shareholder value.
Bajaj Auto Q3 FY24 Results Conference Call Summary
Submission Details • Date of submission: February 1, 2024 • Conference call date: January 24, 2024 • Key executives present: Rakesh Sharma (CEO), Dinesh Thapar (CFO) • Transcript available on investor relations website • Signed by: Rajiv Natvarlal Gandhi (Company Secretary)
Financial Highlights • Record financial performance with: • Revenue: INR 12,114 crores (30% YoY growth) • EBITDA: INR 2,430 crores (20.1% margin) • PAT: Surpassed INR 2,000 crores • Domestic motorcycle retail grew by 11% • Strong performance in commercial vehicles with 77% market share in three-wheelers • Electric vehicle sales: Chetak scooter reached 10,000 units, aiming for 15,000 next quarter
Market Performance • Exports showed a 2% sequential improvement despite challenges • Pulsar motorcycle exports contributed to a 10% growth in export revenue • 125cc+ segment market share: 31% • Positive responses for Triumph and KTM brands with plans for expansion
Future Outlook • Focus on maintaining domestic market momentum while addressing export challenges • Plans to expand electric vehicle offerings • Anticipated increase in commodity costs leading to inflation • Announced buyback of INR 4,000 crores at INR 10,000 per share, pending shareholder approval
Q&A Session Insights • Expansion of Chetak's network and new variant introduction as growth drivers • Strategic approach to product launches based on market segments • Monitoring geopolitical and macroeconomic challenges affecting exports • Plans for exporting Chetak over the next 18 months • Development of CNG motorcycles with a launch expected in FY '25
Additional Notes • Ongoing improvements in domestic motorcycle profitability • Plans for 2-3 product upgrades monthly until April • Focus on balancing growth, market share, and profitability in the 100cc segment • Updates on PLI certification process for electric vehicles nearing completion
Conclusion • The call concluded with expressions of gratitude from participants, highlighting a positive outlook for Bajaj Auto's growth and performance.
Bajaj Auto Limited Q2 FY2024 Results Conference Call Summary
Submission Details • Date of submission: October 26, 2023 • Conference call date: October 18, 2023 • Directed to: BSE Limited and National Stock Exchange of India • Key executives present: Rakesh Sharma (Executive Director), Dinesh Thapar (CFO) • Document signed by: Rajiv Gandhi (Company Secretary)
Financial Performance Highlights • Record financial performance with all-time highs in: • Revenue: ₹10,777 crores (6% YoY increase) • EBITDA: Surpassed ₹2,000 crores • Net Profit: ₹1,836 crores • Exports improved by 8-10% QoQ, but remain at 66% of FY2022 peak levels. • Domestic motorcycle segment grew by 10%, particularly in the 125cc+ category (65% of volumes). • Three-wheeler segment achieved record sales with an 80% market share.
Business Growth and Strategy • Focus on: • Expanding electric three-wheeler business • Positive reception for Chetak electric scooter • Growth in premium biking segment (including Triumph) • Plans to maintain market leadership in three-wheelers and enhance export and electric vehicle initiatives.
Key Insights from Executives • Dinesh Thapar: • Expressed satisfaction with record performance and recovery in export volumes. • Highlighted favorable commodity costs and stable currency contributing to profitability. • Rakesh Sharma: • Discussed market drivers for three-wheelers, including recovery post-COVID and shift to CNG. • Noted strong market share in CNG three-wheelers and potential for electric three-wheelers in specific regions.
Dividend Policy Changes • New payout structure includes buybacks for more flexibility in returning cash to shareholders.
Challenges and Market Dynamics • Slow recovery of three-wheeler exports due to regulatory issues in markets like Egypt. • Competitive positioning of CNG vs. electric vehicles in the three-wheeler market discussed.
Future Expectations • Modest growth expected in the internal combustion engine (ICE) two-wheeler segment. • Plans to introduce new electric two-wheeler models post-festive season. • Anticipated stability in commodity costs despite slight increases in steel and crude prices.
Additional Financial Metrics • Exports for the quarter: Approximately ₹406 million. • Finance penetration: 77% for motorcycles, 90% for three-wheelers. • Spare parts revenue estimated between ₹1,200 crores and ₹1,250 crores. • Triumph pending order book: Approximately 10,000 units remaining.
Conclusion • Overall growth expected in both electric and three-wheeler segments, with a focus on adapting to market trends and enhancing product offerings.
Bajaj Auto Q1 FY24 Results Conference Call Summary
Submission Details • Date of submission: July 31, 2023 • Conference call date: July 25, 2023 • Directed to: BSE Limited and National Stock Exchange of India • Key executives: Rakesh Sharma (Executive Director), Dinesh Thapar (CFO)
Business Performance Highlights • Strong Start to FY24 • Record highs in revenue, EBITDA, and PAT. • 5% increase in motorcycle retail volumes, particularly in premium brands. • Domestic motorcycle segment grew by 19%, driven by Pulsar brand. • Intracity business surpassed pre-COVID sales levels. • Electric vehicle sales faced challenges due to subsidy reductions.
• Future Outlook • Cautiously optimistic for Q2 with incremental improvements expected. • Plans to expand to 44 towns and over 50 stores by end of Q2. • Production target of 5,000 units per month by September.
Financial Overview • Q1 Financial Performance • Record revenues: INR 10,310 crores (16% QoQ, 29% YoY increase). • EBITDA: INR 1,954 crores with 19% margins. • Net profit: INR 1,665 crores; cash surplus over INR 19,500 crores.
• Market Dynamics • Domestic motorcycle market remains robust, especially in the 125+ cc segment. • Commercial vehicle sector recovering strongly.
Challenges and Strategies • Export Market Recovery • Gradual recovery in retail demand; current monthly sales at 140,000 units. • Focus on rebuilding export volumes despite macroeconomic challenges.
• Electric Vehicle Segment • Significant investments planned for manufacturing and innovation. • Targeting 3-4% market share in electric vehicles by year-end.
Q&A Session Insights • Gross Margins and Pricing • 200 basis points drop in margins attributed to negative mix impact and commodity costs. • No significant price hikes in Q2; stable commodity costs.
• Triumph Brand Expansion • Plans to expand Triumph locations from 17 to 50. • New customers primarily from the 250 to 500cc segment.
• Electric 3-Wheelers • Successful launch of electric variants with strong customer interest. • Pricing: Electric passenger variant at INR 3 lakh, CNG variant at INR 2 lakh.
• Market Recovery and Product Launches • Gradual recovery in retail demand; plans for one or two new models annually. • Domestic 3-wheeler market share increased from 70% to 80%.
Conclusion • Bajaj Auto remains well-positioned for future growth despite external challenges, with a strong focus on expanding its product offerings and market presence.
Bajaj Auto Limited Q4 and FY23 Results Conference Call Summary
Conference Call Overview • Date: May 3, 2023 • Key Executives: Rakesh Sharma (Executive Director), Dinesh Thapar (CFO) • Moderator: Anand Newar (Head of Investor Relations) • Transcript available on investor relations website
Financial Highlights • Record-breaking fiscal year 2023 with new milestones in: • Revenue • Spares revenue • EBITDA • Profit After Tax (PAT) • Q4 performance: • 12% revenue growth • 26% year-on-year EBITDA increase • Challenges in exports, particularly in Nigeria
Market Performance • Strong domestic sales in two-wheeler and three-wheeler segments • Growth in the domestic motorcycle market, especially in 125cc and above segments • Launch of new models to enhance market share • Premium motorcycle segment growth anticipated (KTM and Triumph partnership)
Electric Vehicle Initiatives • Integration with Triumph's network in India • Significant progress in the Chetak electric vehicle initiative • Plans to expand sales and service network by mid-year • Launch of electric three-wheelers and collaboration with Yulu
Financial Performance Insights • Dinesh Thapar noted: • Transition from challenging Q1 to record revenue and profit • 12% revenue increase to INR 8,900 crores • 50% growth in volume and effective pricing strategies • Strong balance sheet with cash reserves of INR 17,500 crores
Future Outlook • Optimism for FY’24 driven by: • Upcoming electric vehicle launches • Expansion in cities and dealerships • Record revenues of over INR 36,000 crores (up 10% year-on-year) • Final dividend of INR 140 per share announced
Q&A Session Highlights • Discussion on profitability per unit despite volume decline • Concerns about export markets and currency fluctuations • Insights on electric 3-wheeler business and market leadership • Uncertainty regarding FAME subsidy and potential industry consolidation
Strategic Considerations • Rakesh Sharma emphasized: • Potential impact of FAME subsidy removal on the industry • Plans to enter the electric auto-rickshaw segment • Ongoing dialogue regarding FAME funds and administrative hurdles
Overall, Bajaj Auto remains optimistic about growth prospects, particularly in the electric vehicle market and domestic sales, while navigating challenges in exports and macroeconomic conditions.
Bajaj Auto Q3 FY23 Earnings Conference Call Summary
Key Highlights • Date of Call: January 25, 2023 • Submission: Transcript submitted to BSE and NSE on February 2, 2023 • Key Executives: Rakesh Sharma (Executive Director), Dinesh Thapar (CFO)
Business Performance • Record EBITDA: Achieved all-time high EBITDA for the second consecutive quarter. • Export Challenges: Significant decline in retail sales in South Asia, Africa, and Latin America (down 30% YoY). • ASEAN Growth: Double-digit growth in ASEAN markets due to post-COVID demand.
Domestic Market Insights • Motorcycle Segment: 14% growth in retail; 125cc and above segment grew by 28%. • New Product Launches: Successful introduction of models like Pulsar 125 Carbon Fibre Edition and Pulsar 150. • Three-Wheeler Performance: Strong performance with a 76% market share in Q3.
Future Growth Prospects • Pulsar and CNG Market: Optimism in growth, with 86% market share in CNG. • Electric Vehicle Initiatives: Plans to launch electric 3-wheelers by March; Chetak scooter sales surpassed 10,000 units. • Spares Business: Achieved record revenue through improved customer engagement.
Financial Overview • Revenue Increase: 3% YoY increase in revenue despite a 17% decline in volumes. • EBITDA Achievement: Record EBITDA of INR 1,777 crores; margin improvements due to favorable dollar realization and commodity costs. • Cash Position: Strong cash position of INR 15,000 crores post buyback.
Margin Improvement Discussion • Gross Margins: 300 basis points increase; 70% attributed to lower raw material costs. • Pricing Stability: Little to no pricing changes in domestic and export markets.
Strategic Partnerships and Market Position • Bajaj-Triumph Collaboration: Optimism about surpassing the success of the Bajaj-KTM partnership. • Chetak Stores: Plans for dedicated retail spaces to enhance customer experience in the growing EV market.
EV Market Strategy • Market Share Focus: Emphasis on building capabilities over immediate market share in the EV sector. • Future Preparations: Confidence in expanding product portfolio and recovery in export demand by mid-2023.
3-Wheeler Industry Outlook • Recovery Signs: Industry has reached 76% of pre-COVID levels; increased financing options noted. • Shift to CNG: Positive outlook for the 3-wheeler market due to better operating costs and margins.
Closing Remarks • Investor Relations: Concluded by Anand Newar, Head of Investor Relations.