New Delhi: Pune-based Bajaj Auto plans to speculate about INR 800 crore capex (capital expenditures) in FY 2024-25. The automaker dedicated a capex of INR 800 crore in FY 2023-24 as nicely.
“We will likely be spending between INR 700- 800 crore, primarily to finish the capex on our three wheeler plant and probably some enlargement that we have to do on Chetak as nicely,” Dinesh Thapar, Chief Monetary Officer (CFO), Bajaj Auto, instructed ETAuto in the course of the firm’s post-Q3 earnings media briefing on Thursday.
“Among the capex will go into dyes and moulds, on condition that the innovation and density throughout the enterprise has stepped up,” he added.
Final quarter, ETAuto reported how the 2 and three wheeler maker was working to ‘unlock capacities’ and broaden its community.
On Thursday, Thapar additionally confirmed that Bajaj Auto is bringing a brand new mass-market electrical scooter underneath the Chetak model in Could. Presently it sells two variants of the model- Chetak Premium and Chetak Urbane.
The corporate reported 18% development in its consolidated internet revenue to INR 2,011 crore throughout January-March 2024 quarter, as towards INR 1,705 crore within the corresponding quarter of final yr. Complete income from operations rose to INR 11,555 crore within the quarter ended March 2024, up from INR 8,929 crore within the fourth quarter of final yr.
In response to the CFO, buoyancy of the home market’s efficiency has continued to steer the corporate’s leads to This autumn FY24.
The Board of Administrators have beneficial a ultimate dividend of 80 per share, totalling to INR 2,233 crores.
| Bajaj Auto Home Gross sales (unit volumes) | This autumn FY24 | F4 FY23 | % change |
| Two wheelers | 5,46,881 | 4,14,990 | 32 |
| Three wheelrs | 1,10,449 | 1,00,033 | 10 |
| Complete | 6,57,330 | 5,15,023 | 28 |
CNG motorbike
Final month, Managing Director Rajiv Bajaj confirmed that the automaker is growing a portfolio of unpolluted gas CNG bikes, and the primary such bike will hit the market in June. It is going to goal mileage-conscious customers and is predicted to be priced greater than its petrol counterparts.
When requested concerning the funding that has gone into the CNG motorbike enterprise, Thapar mentioned, “It isn’t such a big quantity, it sits inside our capex. And the majority of our capex that we spend is basically on capabilities and capacities for our electrical enterprise.”
Contemplating the community of CNG infrastructure within the nation which is predicted to develop quicker however is usually concentrated in a couple of states as of now, the automaker is “completely conscious” of planning the launch of its upcoming motorbike in a “phased method”. Within the preliminary section, the motorbike will likely be launched in cities with a dense CNG community.
The corporate mentioned it has an experience and expertise in CNG gas autos as virtually 3/4th of its passenger three wheelers gross sales come from CNG. For the brand new motorbike launch, it has mapped out sure districts throughout the nation when it comes to the provision of CNG community.
As of 2023-end, the Northern and Western area of India has a relatively higher community of CNG stations. Gujarat takes a lead, adopted by Uttar Pradesh, Maharashtra and the NCR (Nationwide Capital Area).
Triumph Enterprise
Final quarter, Bajaj talked about growing the month-to-month manufacturing of Triumph bikes. Presently, Bajaj Auto makes about 6,500 models of its Triumph bikes a month. It goals to attain its goal of 10,000 models by September this yr.
In 2017, Bajaj and British motorbike model Triumph fashioned a worldwide partnership. In July final yr, the 2 corporations launched co-developed Triumph Velocity 400 and Scrambler 400 X bikes in India. The fashions are produced at Bajaj Auto’s new manufacturing facility in Chakan, which initially had a capability to supply 5,000 models of those bikes per thirty days. It was later scaled as much as 8000 models.
Within the October-December 2023 quarter, Bajaj began exports of Triumph bikes by promoting 7000 models in markets together with the UK, US, Japan, Australia and Poland.
Exports
In the course of the January- March 2024 interval, Bajaj’s export revenues grew double digit YoY because it benefited from a richer combine and higher realisations. Nonetheless, quantity was flattish in comparison with final quarter however up about 20% vs. earlier yr, the YoY development being accentuated by a delicate base comparator within the base interval.
| Bajaj Auto Exports (unit volumes) | This autumn FY24 | This autumn FY23 | % change |
| Two wheelers | 3,69,936 | 3,10,415 | 19 |
| Three Wheelers | 41,310 | 34,290 | 20 |
| Complete | 4,11,246 | 3,44,705 | 19 |
A giant a part of the revenues from the exports combine can be being pushed by the cargo of premium bikes to Latin America, which is a big sports activities motorbike market, mentioned the CFO.
