Bajaj Auto posted net profit of ₹1,015 crore in the first quarter of the current fiscal, compared with ₹740 crore in the same period last year, representing a growth of 37%, following a near doubling of other income.
While income from operations stood at ₹5,614 crore against ₹5,252 crore, growing 6.9 per cent year on year, treasury income rose to ₹437 crore from ₹219 crore.
The Pune-based motorcycles major sold over 3,89,000 bikes and 87,000 three-wheelers in the overseas markets, and saw export revenue rise 17 per cent to ₹2,634 crore from ₹2,091 crore in the same period the previous year.
In terms of total number of units sold, Bajaj Auto’s total sales stood 2 per cent higher at 10.13 lakh units versus 9.88 lakh units.
The results however failed to enthuse markets and the Bajaj Auto scrip slipped sharply shedding over 5 per cent before closing at ₹2487.75 a piece, a loss of ₹131.35.
According to Bharat Gainani, auto analyst at Angel Broking, the markets reacted to Bajaj Auto missing street expectations. “At an operating level, we had expected profits to stand at around ₹1,200 crore against ₹1,140 crore that the company posted,” he said, adding that the net realisation per vehicle had been affected adversely on account of lower profitability of recently launched commuter bikes CT100 and Platina that accounted for nearly 30 per cent of total motorcycle sales in the domestic market.
While Bajaj’s share in the domestic market rose to 18 per cent during the quarter (against 15 per cent earlier), the higher numbers in the Indian market have come at a cost of lower realisation per vehicle, he added.