Bajaj Auto’s First Quarter Profit Rises 6%, Margins Remain Flat
Bajaj Auto’s Q1 profits rose 6%. Sales increased 3.5%.
Bajaj Auto Ltd. posted June quarter earnings that were in-line with analyst estimates, but the management warned of headwinds in key export markets.
Net profit rose 5.7 percent year-on-year to Rs 978.4 crore from Rs 924.8 crore, the bike-maker said in its filing to the exchanges. The consensus estimate of analysts tracked by Bloomberg stood at Rs 957.4 crore.
Revenue grew 3.5 percent to Rs 6,089 crore from Rs 5,881 crore in the same quarter last year. This compares to the Bloomberg consensus estimate of Rs 5,950.1 crore.
The margin for earnings before interest, taxes, depreciation and amortization remained flat on a year-on-year basis at 19.3 percent.
Exports Headwinds
Headwinds continue in key export markets like Nigeria and Egypt, the company stated in its press release. The decline in exports can be attributed to availability of foreign currency and depreciation in the Indian rupee, Bajaj Auto added.
Shares reversed early losses and traded as high as 2 percent.