Bajaj Auto Q3 results: Net profit jumps to ₹1,262 crore1 min read . Updated: 30 Jan 2020, 01:24 PM IST
- Revenue from operations rose 3% to ₹7,640 crore
- Operating margin improved sequentially by 150 bps
Bajaj Auto today reported a better-than-expected 15% jump in net profit for the quarter ended December 31, driven by an improved operating margin. Net profit rose to ₹1,262 crore as compared to ₹1,102 crore in the same quarter of the previous year. Revenue from operations rose 3% to ₹7,640 crore.
Operating margin improved sequentially by 150 bps from 16.9% in Q2 of FY20 to 18.4% in Q3 of FY20. This improvement was largely driven by reduction in cost of material, increase in prices and forex gains.
As on 31st December 2019, surplus cash and cash equivalents stood at ₹17,407 crore as against ₹15,986 as on 30 September 2019.
During the quarter, Bajaj Auto sold 1,202,486 units with export volumes at 562,772 units, the highest ever.
Bajaj Auto shares were up about 1.8% in afternoon trade at ₹3145 a share, bucking a weak Mumbai market.
Highlights of Bajaj Auto Q3:
Domestic motorcycle industry recorded a decline of 14%
In the commercial vehicle segment, Bajaj Auto sold over 96,000 units in Q3, with a market share of 57%
Its international business, recorded its highest ever quarterly volumes of 562,772 units in Q3, a growth of 7% year on year and now contributes about 43% of the company's net sales.
Motorcycle sales (international business) grew by 11 % over Q3/FY19, to over 484,000 units, the highest ever.