Bajaj Auto, India’s third largest manufacturer of two-wheelers, posted 16.69 per cent drop in consolidated net profit at ₹1,429.68 crore for the quarter ended December, 2021 weighed down by high input cost and drop in high-margin export volumes.

The corresponding period of last quarter saw the company’s consolidated net profit settle at ₹1,7 16.26 crore. Total income rose to ₹9,369.31 crore, a growth of 1 percent compared to ₹9,279.06 crore posted in the same period last year.

Earnings before interest tax, depreciation and amortisation (EBITDA) margin was at 15.6 per cent for the quarter which was much lower than the historical highs of 20 per cent that the Pune-based company was able to maintain consistently.

Total volumes, comprising two-wheeler and three-wheelers in export and domestic segments, fell 10 per cent to 1.18 million units in the December, 2021 quarter against 1.30 million units in the same quarter last year.

While export volumes were consistently higher than domestic volumes, they were 4 per cent less than same period last year primarily on account of fall in demand from Sri Lanka, which is one of the biggest overseas markets for Bajaj Auto.

Domestic two-wheeler volumes were 20 per cent lower at 471,284 units in the December quarter against 585,469 units sold in the same quarter last year. The company, however, claimed to have improved its markets share to 19.2 per cent from 18.6 per cent.

Consistent rise in product prices and weak sentiments, especially in the rural markets, have led to the fall in demand for two-wheelers across the industry. While domestic demand is not expected to see much reversal in the coming months, Bajaj Auto hopes that export volumes will touch record levels by the end of this quarter.

At the stand-alone level, the company clocked net profit of ₹1,214.19 crore, a fall of 22 per cent, against ₹1,556.28 crore clocked in the same quarter last year.