Bajaj Auto Q2 Results: Profit Rises On Higher Sales

Bajaj Auto Ltd.’s profit rose beating estimates in the second quarter, driven by exports and improved domestic demand.

Net profit of the Pune-based two-wheeler maker increased 20.1% sequentially to Rs 1,274.6 crore in the three months through September, according to an exchange filing. That compares with Rs 1,184-crore consensus estimate of analysts tracked by Bloomberg.

Q2 FY22 Highlights (QoQ)

• Revenue rose 19% to Rs 8,762.2 crore, against the Rs 8,522-crore forecast.

• Operating profit, or earnings before interest, tax, depreciation and amortisation, up 25% to Rs 1,401.1 crore. That compares with the Rs 1,119-crore estimated.

• Operating margin stood at 16% against 15.2%.

Bajaj Auto saw sales increase 11% sequentially to 11.44 lakh units in the July-September period.

Two-wheeler demand in India, however, has suffered because of increased cost of vehicles ever since the transition to the stricter Bharat Stage VI emission standards. Higher raw-material prices have prompted at least three price hikes this year alone. Besides, costlier fuel has been hurting sales, especially in smaller cities and towns.

Shares of Bajaj Auto closed 0.4% before the results were announced compared with a 0.31% decline in the benchmark Nifty 50.