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.

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