Bajaj Auto Q2 net dips to ₹1,112 cr

MUMBAI: Bajaj Auto Ltd’s net profit for the quarter ended September dropped 0.97% over the year-ago period, beating estimates, the company said in a statement. The decline for the fourth straight quarter was led by weak motorcycle volumes in the domestic and overseas markets and higher input costs.

Net profit at the maker of Pulsar and Discover motorcycles crimped to ₹1,112 crore compared to ₹1,123 crore a year ago, while net revenue rose 2.12% to ₹6,461.3 crore compared to ₹6,327.12 crore from a year ago. The revenues for this fiscal year are not comparable to the previous numbers because they are disclosed net of the goods and services tax (GST), the company said in a BSE statement.

The company’s motorcycle volumes during the quarter (including exports) advanced by a mere 2% to 918,721 units over the same period a year ago.

The earnings overshot estimates. The company was expected to post a profit of ₹1,090 crore on net sales of ₹6,289 crore, according to a Bloomberg survey.

The earnings before interest, tax, depreciation and amortisation (Ebitda) margin, a measure of profitability, stood at 20.8% for the quarter, down from 22.3% for the previous year.

S Ravikumar, president A major issue for us is in the entrylevel segment and the domestic market overall but we believe the CT100, Platina ES100 and the new Platina ComforTec have solved these problems as September sales reflected. The domestic three-wheelers and overall exports are falling in place”, said S Ravikumar, president, business development and assurance, Bajaj Auto.

The country’s second-biggest motorcycle maker and largest passenger carrier three-wheeler reported a 3.83% rise to 1,071,510 units in total sales year-on-year.