Industry

Bajaj Auto Q2 net drops 19%

Bajaj Auto Ltd. reported a 19% decline in net profit to ₹1,138 crore for the quarter ended September 30, from a year earlier. The company attributed this to lower treasury income and government restrictions on export benefits.

The company’s turnover during the period fell 8% to ₹7,442 crore. Revenue from operations declined 7% to ₹7,156 crore. The company said optimisation of fixed costs had helped in improving the margin profile.

Total unit sales during the quarter was 10% lower at 1.053,337 from a year earlier.

“Domestic two-wheelers registered a strong turnaround in the first half of the quarter driven by pent-up demand,” the company said in a regulatory filing.

“While the exact festive spike is awaited, early signs show indications of a recovery.”

It added that domestic commercial vehicle (CV) volumes continued to remain muted and was dependant on adequate demand for short-distance mobility returning.

‘Cargo fares better’

“Within CV, cargo has fared better than passenger and our share has increased to 37% which is the highest ever. Overall, our market share was 53.3%,” it said.

September recorded the highest-ever sales in exports at 2,12,000 units.

“Strong revival of demand was witnessed in Latin America and Africa while ASEAN continues to be weak; Sri Lanka has stopped all vehicle imports. The growth in Latam is driven by the sports segment, namely Pulsar and Dominar,” the company said.

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Printable version | Nov 28, 2020 11:09:14 PM | https://www.thehindu.com/business/Industry/bajaj-auto-q2-net-drops-19/article32922082.ece

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