Bajaj Auto Ltd.’s first-quarter standalone net profit declined 53% to ₹528 crore for the period ending June 30, 2020, from ₹1,126 crore in the same period last year on account of challenges due to the COVID-19 pandemic.
The company’s total income also declined 58% to ₹3,417 crore compared with the ₹8,197 crore in the same period last year.
“The first quarter of FY21 has been extremely challenging due to the unprecedented COVID-19 pandemic. Lockdown and other containment and precautionary measures have resulted in disrupted supply lines and a sharp decline in overall demand,” Bajaj Auto said in a statement.
“Impact of this pandemic was experienced in India and in countries that we export to. While we have restarted operations, sporadic localised lockdowns are disrupting the supply chain,” and impacting the return to normalcy, it added.
Low volume
For the quarter, the company’s sales volume was low at 4,43,103 units, including exports, compared with 12,47,174 units a year earlier.
As of June 2020, the company’s surplus cash and cash equivalents stood at ₹14,232 crore. It was ₹14,322 crore on March 31, 2020.
