Bajaj Holdings January-March Profit Down On Low Revenue, Weak Auto Contribution

Bajaj Holdings consolidated net profit for the March quarter dropped 36.5% on year to ₹17.25 billion, mainly due to a sharp fall in revenue and a lower contribution from associate Bajaj Auto Ltd. Most of Bajaj Holdings' bottom line comes from its share of profits in associate companies.

Total revenue for the quarter plunged to ₹1.45 billion from ₹12.20 billion a year earlier, while total income fell 81% on year to ₹2.32 billion. Bajaj Holdings is the holding company for Bajaj Auto, Bajaj Finserv Ltd., and Maharashtra Scooters Ltd.

The company had reported higher income a year ago after Bajaj Holdings and subsidiary Maharashtra Scooters tendered equity shares in a Bajaj Auto buyback. That boosted profit after tax by ₹11.11 billion in the year-ago quarter, Bajaj Holdings said.

In the March quarter, Bajaj Holdings' profit was also impacted by its share of net losses in KTM, a subsidiary of Bajaj Auto. Bajaj Auto’s consolidated profit after tax fell to ₹18.02 billion after an impact of ₹3.35 billion from KTM’s losses.

Bajaj Finserv’s consolidated net profit rose 14% on year to ₹24.17 billion, while Maharashtra Scooters' net profit rose to ₹516.3 million, helped by a gain from asset sales at its factory.

“BHIL remains essentially a holding and investment company. Its focus is on earning income through dividends, interest, and profits on investments held,” the company said.

On January 30, the board approved a proposal to reclassify Bajaj Holdings as an unregistered core investment company instead of an investment and credit company, subject to RBI approval. The company is realigning its investment portfolio as per RBI guidelines.

For 2024-25, consolidated net profit moderated to ₹65.21 billion from ₹72.67 billion in 2023-24, while revenue fell to ₹6.84 billion from ₹16.49 billion. The board recommended a final dividend of ₹28 per share.