Bajaj Auto Q2 profit rises 21.22 % to Rs 1,523.3 cr

Bajaj Auto on Wednesday posted a consolidated net profit of Rs 1,523.3 crore for the second quarter of the fiscal year, up by 21.22 per cent from the year-ago quarter’s Rs 1,256.57 crore. 

The total revenue from operations during the quarter stood at Rs 7,707.32 crore, compared to last year’s second quarter’s Rs 8,036.34 crore, registering a dip of 4.09 per cent.

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The company’s total vehicle sales was 1173591 units during this quarter, marking a decline of 12 per cent from last year’s 1339444 units. Its total motorcycle sales during the quarter under review was 9,84,240 units, as against 11,26,542 units in the same quarter a year ago, posting a decline of 13 per cent. Its total commercial vehicle sales stood at 1,89,351 units as compared to 2,12,902 units in the corresponding quarter of last fiscal, down 11 per cent.

In the domestic market, motorcycle sales plummeted by 25 per cent to 5,21,350 units as compared to 6,92,899 units in the year-ago quarter, the company said. “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. Performance of Bajaj Auto was in line with the industry; retail market share at ~20%,” the company said in a statement. 

But, in the 150cc+ segment, the company continues to maintain its dominance. Pulsar, along with Avenger, sold over 174,000 units in Q2 of FY20, the company said. 

Its international business, which contributes around 41 per cent to its net sales, posted an increase of 2 per cent to 544511 units in total, compared to the year-ago period’s 534799 units. In this, the exports of motorcycles posted an increase of 7 per cent, whereas the exports of CVs saw a decline of 19 per cent. 

Africa, driven by Nigeria, Kenya and Ethiopia, recorded a growth of 16% over last fiscal year’s second quarter, while Latin America continues to face economic headwinds, recording a decline of 5% over Q2 of FY19, the company said. The relative slowdown in Srilanka has been compensated by growth in Bangladesh and Egypt, it added.