Bajaj Auto

With the company battling an auto industry slowdown and market share losses for its ‘Discover’ bikes, Bajaj Auto has been on a sticky wicket.

In the market rally of the last one year, the stock gained only about 10 per cent. The latest September quarter results have also been a bit of a dampener.

Thanks to better three-wheeler, Pulsar and export sales, volumes grew by about 10 per cent. Net sales moved up 15 per cent to ₹5,827 crore over September 2013. But higher raw material costs, increased depreciation and other expenses, along with an exceptional item of expense, pulled profits down.

The net profit stood 29 per cent down at ₹591 crore. Operating margin also contracted by 3 percentage points to 18.8 per cent in this quarter.

For the six months ended September 2014, the company’s two-wheeler sales have dropped by 11 per cent, compared with Hero MotoCorp’s 13 per cent volume growth. The company hopes to end the year with a 10 per cent growth in motorcycle sales.

Much depends on how the festival season sales of October turn out, as well as the success of the newly-launched Discover 150 cc, an entry-level sports bike. The company is also targeting a refreshment of the Platina, its commuter bike in the fourth quarter of this year.