The company’s performance for the quarter were impacted by the explosive growth in cases of covid-19 from April, which led to lockdown measures being imposed by almost all state governments
NEW DELHI :
Bajaj Auto Ltd—one of the country’s leading motorcycle and three-wheeler manufacturer—doubled its net profit of ₹1,061.20 crore for the quarter ending 30 June, as a result of the low base of last year. The company reported a net profit of ₹528 crore for the corresponding period last fiscal due to nationwide lockdown to tackle the first wave of covid-19.
The Pune-based manufacturer reported a bottom line of ₹1,551.28 crore in Q4FY21.
The company’s performance for the quarter were impacted by the explosive growth in cases of covid-19 from April, which led to lockdown measures being imposed by almost all state governments.
Revenue from operation grew by 139.86% to ₹7,386 crore due to the robust exports orders during the quarter. On a sequential basis, the company’s topline dropped from ₹8,596.10 crore in Q4FY21.
“Q1FY22 has been a challenging quarter; the recovery over the past three quarters got undone with the second wave of covid-19, which again led to restrictions and full or partial lockdowns. This resulted in weaker domestic demand, which was partially offset with strong exports across all major geographies," the company said in a statement.
Bajaj’s operating profit or earnings before interest, tax, depreciation and amortization (Ebitda) also rose by 174% to ₹1,120 crore and the operating margins also expanded by 190 basis points to 15.2% due to the cost cutting efforts and increase in volumes.
The auto industry came under pressure from the first week of April when Maharashtra began strict lockdown measures. Delhi, Haryana, Karnataka, Tamil Nadu and others followed suit. Maruti Suzuki, Hero MotoCorp Ltd, Hyundai and others either stopped production or reduced output significantly.
Some like Bajaj Auto Ltd, however, continued to operate with limited capacity to meet export orders. With a steady drop in infections, especially in north and south India, most automakers have resumed operations from the middle of May.