The motor company’s advertising spends was Rs 371.19 cr compared to Rs 168 cr in the previous fiscal
Bajaj Auto has increased its advertising budget by 120.87% in FY 2022-23, according to the company’s annual report. It spent Rs 371.19 crore on advertising for the year ended 31 March 2023 as compared to Rs 168.06 crore in the previous fiscal.
The report for the year 2022-23 says that the company’s sales promotion expenses have declined to Rs 30.50 crore against Rs 43.01 crore in the previous fiscal year.
According to the annual report, exports accounted for 52.7% of Bajaj Auto’s net sales in FY2022. Exports fell in both volume and value due to a variety of circumstances outside the company’s control. Political and economic uncertainty in numerous major importing countries, including Nigeria, Egypt, Sri Lanka, and Bangladesh; demonetisation in Nigeria; importers’ inability to obtain US dollars, etc. were cited as the causes.
“Bajaj Auto was not the only company that was affected. All exporters were. Under the circumstances, the company consciously decided to ‘bite the bullet’ and reduce its exposure in some of its key international markets. The rationale: we are in the business to generate revenues and profits, not receivables,” said Niraj Bajaj, Chairman, Bajaj Auto.
He highlighted in the annual report that the company has posted the highest-ever net sales of Rs 35,359 crore. Its total operating income stands at Rs 36,428 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) was at Rs 6,551 crore and the Profit before tax (PBT) was Rs 7,409 crore and Profit after tax (PAT)was Rs 5,628 crore.
