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Better realisations per vehicle, increased exports and tighter cost control helped Bajaj Auto beat market estimates in the quarter ended September.
The Pune-based company posted a net profit of Rs 837 crore for the quarter, a rise of 13 per cent compared with Rs 740 crore in the corresponding quarter last year. Analysts tracking Bajaj Auto expected net profit to stand at Rs 790-800 crore. Sales volume fell to 961,330 units from 1049,208 units in the corresponding quarter last year. However, gross revenue rose to Rs 5,334 crore, compared with Rs 5,100 crore in the year-ago period, primarily due to the rupee’s slide.
In the September quarter, average realisation was Rs 60.9/$, against Rs 55.6/$ in the June quarter and Rs 50/$ in the September quarter last year, the company said. S Ravikumar, senior vice-president (business development and assurance), said, “The Pulsar mix was relatively good in the second quarter; export realisations were also higher and three-wheelers did better. Exports will continue to do well.” The company’s earnings before interest, tax, depreciation and amortisation margin rose to 23.1 per cent from about 20 per cent.
Export revenue surged 26 per cent to Rs 2,125 crore, compared with Rs 1,686 crore in the year-ago period. Bajaj Auto is the market leader in African markets such as Kenya, Ethiopia, Nigeria and Uganda. Export accounts for 40 per cent of the turnover and contributes 41 per cent to volume.
