Bajaj Auto will announce its financial results for the first quarter of 2022-23 (Q1FY23) on Tuesday. Last time, in Q4FY22, the company recorded a net profit of Rs 1,468.95 crore year-on-year (YoY).
Additionally, from Rs 1,332.07 crore in Q4FY21, earnings increased by more than Rs 130 crore to Rs 1,468.95 crore in Q4FY22.
The company recorded a steady increase in net earnings in FY22. In the first and second quarters, the net profit was Rs 1,061.18 crore and Rs 1,274.55 crore.
After increasing through the first three quarters of FY22, the company’s total revenue fell in the final quarter. In the first and second quarters, revenue was recorded at Rs 7,386.04 crore and Rs 8,762.18 crore respectively.
Revenue peaked in the third quarter at Rs 9,021.65 crore. It then fell to Rs 7,974.84 crore in Q4FY22.
The shortage of semiconductors, which began after the coronavirus pandemic two years ago, has hurt the entire automotive sector. Companies have reduced their production capacity due to an increase in demand for these chips in other sectors such as IT.
To cope with declining revenues, Bajaj Auto has increased the prices of its vehicles, effective April 1, 2022. On July 6, Bajaj Auto Chairman Niraj Bajaj was quoted by Financial Express as saying, “It It’s hard to predict when this supply shortage will end. But until then, it will limit your company’s production volumes, as it will for all other automakers.
However, a July 21 Reuters report quotes experts as saying supply-side constraints are now “easing”.
On Monday, Bajaj Auto was trading at Rs 4026.55 on BSE. On NSE, it was trading at Rs 4,026.45.