Bajaj’s two-wheeler business recovered traction over last 12 months says CFO

Over the last 12-15 months, Bajaj Auto’s two-wheeler business has started to regain momentum and look after weathering a perfect storm, Dinesh Thapar, CFO of the company said in an interview with CNBC TV-18. Thapar further suggested that the automobile major has assumed pole position in the 125 cc segment.

The volumes had taken a hit in 2023 amid a dip in export demand. In March, Bajaj Auto’s export volumes in the two-wheeler segment dropped by 36.5 percent year-on-year, marking the ninth consecutive year-on-year fall.

As far as the premium segment is concerned, Thapar said that Bajaj’s Triumph could potentially double the company’s premium motorcycle business over the next couple of years.

At about 10:30 am, the counter was trading at Rs 7,090, up 1.5 percent from the previous close on the NSE. In the last one year, the stock has gained 96 percent, becoming the second-best nifty stock after Tata Motors.

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As for the outlook, FY24 is ahead of the management’s expectations. The company’s is slated to announce its third quarter results on January 24.

Also read: Bajaj Auto stock zooms 5%, but most investors may not get Rs 10,000 share buyback bonanza

In an earlier interview, Rajiv Bajaj, MD of Bajaj Auto said that the company has had an excellent 2023 and will end the financial year 2024 with cash of Rs 20,000 crore. “Whenever the company has more than Rs 15,000 crore worth of cash on its books, he expects to give back over 70 percent to the investors.”

On January 8, the board of the company approved a Rs 4,000 crore share buyback at Rs 10,000 apiece. This is at a premium of 43 percent to the last closing price.

Bajaj Auto will be buying 40 lakh shares via tender route, representing 1.41 percent of Bajaj Auto’s outstanding shares. Promoters of the company will also be participating in the buyback. Currently, the promoters hold a 54.94 stake in the company.

The automaker said the Board has constituted a Buyback Committee and has delegated the power to do all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary, expedient, or proper in connection with the buyback.

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