Record Three-Wheeler Sales, Festive Demand Lift Bajaj Auto’s Q2 Earnings
Bajaj Auto’s profit fell 0.6% year-on-year to Rs 1,193 crore in the September quarter.
- Bajaj Auto registers 2 percent year-on-year growth in revenue
- Revenue growth led by 4 percent volume growth
- Margins higher than expectations on better cost control
- Export market pick-up aids overall price realisations
- Higher share of three-wheleer sales lifts operating performance
Bajaj Auto Ltd.’s profit fell less than estimated on higher revenue as the automaker sold record three-wheelers and demand for its flagship Pulsar motorcycle rose during the festival season.
Net profit declined for the second straight quarter. It fell 0.6 percent year-on-year to Rs 1,193 crore in the three months ended September, according to its exchange notification. That’s higher than Rs 1,090 crore consensus estimate of analysts surveyed by Bloomberg.
Volumes rose 3.8 percent to 10.71 lakh vehicles after five quarters of decline. That boost revenue by 2 percent to Rs 6,566.4 crore, compared to the estimate of Rs 6,580 crore.
We had the highest turnover. We also reported the highest EBITDA. The earnings were (better) because of the success in each of the business verticals.Kevin D’Souza, President, Finance At Bajaj Auto
Earnings before interest, tax, depreciation and amortisation rose 0.3 percent to Rs 1,383 crore, and margins contracted to 19.7 percent from 21.4 percent. It’s margins were expected to contract on higher commodity costs.
Exports rose 6 percent, driven by commercial vehicles. “Given the success of the new products and demand for the commercial vehicles, we see the third and fourth quarters being reasonably healthy as well,” D’Souza told BloombergQuint by phone.
Shares of Bajaj Auto rose as much as 2.8 percent after the earnings announcement compared to a flat S&P BSE Auto Index.
Other Highlights
- Highest ever quarterly sales of commercial vehicles in the domestic market at 84,938 units.
- Highest ever monthly sale of Pulsars in September at 112,075 units.
- Motorcycle sales rose 2 percent to 918,721 units.
- Commercial vehicle sales rose 14 percent to 152,789 units.
Bajaj Auto’s President-Finance, Kevin D’Sa spoke to BloombergQuint on the fineprint of second quarter earnings. Watch the full video here.