What is the overall financial health of Bajaj Auto based on latest results?

Bajaj Auto's overall financial health based on the latest results from FY 2024-25 and Q3 FY 24-25 appears strong and resilient amid market challenges. Key highlights are:

Revenue and Profitability:

• For Q3 FY 24-25, Bajaj Auto reported revenue from operations of ₹13,168.88 crore and a profit after tax (PAT) of ₹2,195.65 crore, showing steady year-on-year growth from ₹12,165.33 crore and ₹2,032.62 crore respectively. Earnings per share (EPS) stood at ₹78.7 for this quarter.

• For FY 2024-25, revenue crossed ₹50,000 crore (₹518.6 billion), up 12% YoY, with a record EBITDA of over ₹10,000 crore and PAT exceeding ₹8,000 crore. The EBITDA margin held steady at around 20% for several quarters, reflecting strong operational discipline.

Profit Margins and Operational Efficiency:

• Bajaj Auto demonstrated operating profit margins around 21%, gross profit margin over 30%, and net profit margin close to 16.5% in recent fiscal years, indicating efficient cost management and strong pricing power in the competitive market.

• Operating profit and net profit have shown sustained growth, supported by good cost controls despite inflationary pressures on raw materials.

Balance Sheet and Cash Position:

• The company maintains a very healthy balance sheet with low debt-to-equity ratio (~0.22 as of March 2023) and substantial cash reserves (surplus cash of approximately ₹17,445 crore as of FY 2023).

• Capital employed grew to about ₹38,788 crore in Q3 FY25, showing expanding asset base supporting growth.

Segment Performance:

• The automotive segment remains the primary revenue driver with over ₹12,800 crore in Q3 FY25 revenues. The financing and investments segments also contribute positively.

• Export growth remains strong and contributes significantly to the overall revenue streams.

Dividend and Shareholder Returns:

• The Board has recommended robust final dividend payments, underscoring strong cash flows and a shareholder-friendly capital return policy.

Risks and Mitigations:

• Bajaj Auto faces operational risks from raw material price inflation, supply chain constraints, and competitive pressures in both domestic and international markets. However, it mitigates these through diversification, cost efficiencies, premium product focus, and digital transformation initiatives4.

Summary:Bajaj Auto is financially healthy, with growing revenues, strong profit margins, robust cash flow generation, and a conservative debt profile. The company’s operational resilience, balanced product portfolio, and strategic investment in innovation and exports position it well for sustained growth and profitability in the near future.

If you want detailed financial ratios or segment-wise analysis, I can provide those as well. Sources:FinancialExpress