Bajaj Auto Ltd. reported a standalone net profit of ₹1,402 crore for the second quarter ended September 30, 2019, compared to ₹1,152 crore for the same period last year, a 22% increase.
The net profit includes a ₹182-crore tax writeback as a result of the recent reduction in corporate tax. Consolidated net profit was at ₹1,523 crore.
However, the company reported lower turnover of ₹8,101 crore as compared to ₹8,347 crore in the same period last year, down 3%.
During the quarter, the company sold 11,73,591 units as compared to 13,39,444 units, down 12%. Motorcycle sales and commercial vehicle (CV) sales were down 25% and 4% respectively. However, exports rose 2%.
“Q2 was a difficult quarter for the domestic motorcycle industry. In retail terms, the decline was 14% [in billing terms, the decline was 21%] as against Q2 FY19,” the company said.
“The performance of Bajaj Auto was in line with the industry with retail market share at 20%,” it added. During the quarter, the company sold 1,07,000 units of commercial vehicles with a market share at 59.4%. International business contributed to 41% of the net sales. The company recorded sales of over 5,44,000 units for the second quarter of this fiscal, ie FY20.
Motorcycle sales grew by 7% over same period last year, to nearly 4,63,000 units. Africa sales, driven by Nigeria, Kenya and Ethiopia, recorded a growth of 16% over Q2 FY19.
Relative slowdown in Sri Lanka has been compensated for by growth in Bangladesh and Egypt, it added.
