Bajaj Auto net profit surges to ₹1,402 crore, shares rise1 min read . Updated: 23 Oct 2019, 01:36 PM IST
- Bajaj Auto's international business contributed to about 41% of the automaker's net sales
- Overall revenue from operations dipped 4% year on year to ₹7,707 crore
Bajaj Auto today reported better-than-expected earnings for the quarter ended September 30, pushing its shares 2% higher in afternoon trade. Bajaj Auto shares were up 2% at ₹3,186 as compared to a 0.44% rise in Sensex. The automaker's profit rose 22% to ₹1,402 crore, aided by a tax expense reversal of ₹182 crore due to the recent lowering of corporate tax rate.
Revenue from operations dipped 4% year on year to ₹7,707 crore. Operating margin also dipped to 16.9% from 17.9% a year earlier.
Total volumes during the quarter dipped 12% to 1,173,591 units as compared to 1,339,444 units in the same quarter of the previous quarter.
"Q2 was a difficult quarter for the domestic motorcycle industry. In retail terms, the decline was 14% ( in billing terms, the decline was 21%). Performance of Bajaj Auto was in line with the industry; retail market share at about 20%," Bajaj Auto said in a statement.
In August 2019, Bajaj Auto had launched an all new Pulsar 125 and has sold over 40,000 units.
Its international business contributed to about 41% of the automaker's net sales. In terms of international business, Bajaj Auto recorded sales of over 544,000 units for Q2.
After payment of dividend and tax of ₹2,072 crore, surplus cash and cash equivalents stood at ₹15,986 crore as on 30th September 2019, Bajaj Auto said.
In the 150cc+ segment, the Company continues to maintain its dominance. Pulsar, along with
Avenger, sold over 174,000 units in Q2 / FY20