Bajaj Auto profit up 20.71% to ₹1,115 cr in Q1, misses estimates
MUMBAI: India’s second-largest motorcycle maker Bajaj Auto Ltd on Friday reported a 20.71% jump in June quarter (Q1) net profit, compared to the corresponding quarter of the previous year on the back of higher motorcycle and three-wheeler sales in domestic and overseas markets.
Bajaj Auto continued to be in the black for the third consecutive quarter, after a downturn over four quarters.
Net profit at the maker of Pulsar and Discover motorcycles rose to ₹1,115.23 crore in the three months to June 30 from ₹923.93 crore in the year-ago period, the company said in a regulatory filing. Net sales rose 26.6% to ₹7,267.19 crore from ₹5,740.3 crore a year earlier.
The results were well below estimates. A Bloomberg survey of 23 analysts expected the Pune-based automaker to post a profit of ₹1,249 crore on net sales of ₹7,764.7 crore.
Bajaj Auto’s sales for this quarter are not comparable with the year ago because they are disclosed net of the goods and services tax (GST) introduced in July, Bajaj Auto said. Analysts also warn against making year-on-year compari- sons, because of heavy pre-buying ahead of April when the Supreme Court unexpectedly ruled in favour of migration to the Bharat Stage IV emission norms.
Total sales volumes during the quarter rose 38.1% to 1,226,641 units, with motorcycle volumes (including exports) advancing 33% to 1,029,964 units over a year ago, posting growth upwards of 20% in both domestic and overseas markets. Total three-wheeler sales jumped 74% to 196,677 units, led by the domestic market.
For the quarter, Bajaj Auto’s reported Ebitda (earnings before interest, taxes, depreciation and amortization) margin, a key measure of operating profitability, remained flat at 18.4% as compared to a year ago.