Bajaj Auto posts 10 per cent growth in last decade

Bajaj Auto on Wednesday said it has clocked a compound annual growth rate (CAGR) of 10 per cent in the last ten years, with revenue shooting up to ₹29,919 crore in 2019-20.

The company also said it has achieved several milestones in the last financial year that has helped it set the tone for its next phase of growth.

Last October, Bajaj Auto brought back the iconic Chetak scooter in an all-new electric avatar. Bookings opened in January 2020 in Pune and Bengaluru and deliveries commenced in early March.

The automaker said it posted revenues of ₹29,919 crore in 2019-20 with operating EBITA margins of 17.6 per cent at ₹5,253 crore and profit before tax of ₹6,580 crore.

"After the announcement of corporate results for FY20, Bajaj Auto has emerged as the largest 2/3-wheeler manufacturer in the country measured in terms of revenue. The company has clocked a CAGR of 10 per cent over the last decade (2010 – 2020), with revenues moving up from ₹11,509 crore in 2009-10 to ₹29,919 crore in 2019-20," Bajaj Auto said in the release.

This achievement is testimony to the company's unwavering focus and relentless pursuit of its three pronged strategy –- using its R&D to develop innovative products and create differentiated brands; building a global business and leveraging principles of TPM to simplify operations and deliver top class quality, said company's Executive Director Rakesh Sharma.

"Despite the uncertainties surrounding the immediate future, we are confident that our strategic path will serve our ambitions of global leadership and business success," he added.

The company continues to leverage its R&D prowess to deliver meaningful innovation and differentiated value propositions to customers in the mass commuter segments, the company said.

In the last 12 months, it has rolled out new models such as Platina H-gear and the CT110 besides increasing its leadership market share of the intra-city business unit comprising the RE, Maxima and Qute brands of 3-wheelers and quadricycles.

“Our reach in global markets coupled with a diverse and evolving product portfolio has helped us de-risk our business as we are not overtly reliant on any one geography or product. Consequently, our revenues and profits are not dependent on any specific sets of products or geography," CFO Soumen Ray said.

"Our strong operating performance is a combination of our export performance, product mix and forex, which allow us several levers to protect our industry leading margin," Ray added.

Bajaj Auto, which accounts for over 50 per cent of the country's 2-wheeler and 3-wheeler exports, said that 47 per cent of its production was consumed in the overseas markets in the previous fiscal across over 79 countries.

The company's growth and presence in the domestic and international marketshave been on the back ofits own brands as well its alliance with KTM, the company said in the release.