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Bajaj Auto dips on lower-than-expected Q1 earnings

Operating margins declined to 19.6% in June 2014 quarter from 21.3% in the same quarter last year.

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SI Reporter Mumbai
Last Updated : Jul 17 2014 | 12:57 PM IST
Bajaj Auto has dipped almost 3% to Rs 2,084 on BSE after reporting a flat growth in the first-quarter standalone net profit at Rs 740 crore, due to higher expenditure including employee cost.

Analysts on an average had expected profit of Rs 838 crore in April-June (Q1) quarter. The country’s second largest two-wheeler maker had profit of Rs 738 crore in the same quarter last year.

Net sales however grew 6.7% to Rs 5,133 crore during the quarter under review from Rs 4,809 crore in the April-June 2013 period, Bajaj Auto said in a statement.

The company’s operating profit fell 1.6% on yearly basis to Rs 1,039 crore, while margins declined by nearly 200 basis points to 19.6% from 21.3% during the recently concluded quarter, it added.

Total expenditure of the company rose by 8.5% yoy to Rs 4,396 crore, while employee cost jumped by 16.9% yoy to Rs 215 crore.

The stock opened at Rs 2,145 and touched a high of Rs 2,156 on BSE before the announcement of results. A combined 435,000 shares changed hands on the counter so far on BSE and NSE.
 

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First Published: Jul 17 2014 | 12:13 PM IST

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