Bajaj Auto's Q2 FY25: Record high sales, growing cash flow, but declining profits

Despite a flat financial performance in the quarter ending September 2024, Bajaj Auto, a leading player in the automobile two and three-wheeler industry, has received a ‘Buy’ call from MarketsMOJO. The company’s operating cash flow has been consistently growing over the past three years, with the highest annual amount of Rs 6,558.16 crore. Additionally, the company’s net sales for the quarter were at a record high of Rs 13,247.28 crore, showing a positive trend in the near term.

Bajaj Auto’s operating profit (PBDIT) for the quarter was also at its highest in the last five quarters, indicating a positive trend in the company’s efficiency. However, there are some areas that need improvement, such as the decline in profit after tax (PAT) and profit before tax (PBT) by -31.4% and -14.25% respectively, compared to the same quarter last year. The company’s earnings per share (EPS) and dividend payout ratio (DPR) have also decreased, showing a decline in profitability and lower distribution of profits to shareholders.

On a positive note, Bajaj Auto’s non-operating income has increased, but it may not be sustainable in the long run. Overall, Bajaj Auto’s financial performance for the quarter ending September 2024 has been mixed, with some areas showing improvement and others needing attention. Investors should carefully consider these factors before making any investment decisions.