Pune-based Bajaj Auto, the second-largest two-wheeler manufacturer, posted a 16 per cent decline in net profit at ₹1,719 crore for the second quarter ended September 30, compared to ₹2,417 crore in the same quarter last year.

 The company’s revenue from operations grew 16 per cent to ₹10,202 crore compared with ₹8,762 crore in the same quarter last year and ₹8,004 crore in June quarter. 

Bajaj Auto said the quarterly revenue from operations surpassed ₹10,000 crore for the first time. 

“Macro-economic challenges in select overseas markets subdued exports billing volumes; however, a strong show in ASEAN (with Philippines registering its highest sales) and improved foreign exchange realisations partly alleviated the drag on turnover,” said Bajaj Auto.

At 11,51,012 units, there was a one percent increase in volumes during the September quarter against 11,44,407 units sold in the same quarter last year. The company’s surplus cash stood at ₹15,538 crores.

The company said it witnessed a rebound in domestic motorcycle market share and the improvement in semiconductor supplies enabled a build-back of channel inventory ahead of the festival season. 

Pulsar performance

The company said Pulsar continued to deliver strong performance throughout the quarter while Chetak witnessed growth in sales volumes. 

“BJAUT reported healthy performance in 2QFY23. Going forward we expect turbulence in its exports business amid a slowdown in a few geographies. In view of significant cut in high margin exports business, slower recovery in domestic business, market share loss domestically and in overseas , at present we have SELL rating on BJAUT, while post management’s commentary on exports outlook we would revisit our recommendation,” said Mitul Shah - Head of Research at Reliance Securities.