A Peek Within. Bajaj Auto: Revving up bl-premium-article-image

Parvatha Vardhini C Updated - January 24, 2018 at 06:19 AM.

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Despite volume growth of just 2.5 per cent in the quarter ended June 2015, Bajaj Auto’s net sales grew by a higher 7.2 per cent to ₹5,505 crore (over the year-ago period). Recent launches, such as Pulsar RS 200, AS 150 and AS200 premium bikes have helped the company improve realisations.

Average realisations moved up from ₹51,930 in the June 2014 quarter to ₹54,341 now. This along with benign raw material prices helped operating margin expand to 20.2 per cent this quarter from 17.6 per cent a year ago.

Net profit grew 37 per cent to ₹1,014 crore now, helped partly by a doubling of other income in this period.

While the last year has been tough for Bajaj Auto with falling market share and tepid demand, the company may be back on the growth path soon. Volume growth is expected to gain further traction in the coming quarters.

The company is beefing up its presence in the Avenger (premium) and Discover (executive) segments. After a lull, overseas demand for two- and three-wheelers is rebounding quite well, especially in countries such as Nigeria, Sri Lanka, Bangladesh and Egypt. The company expects exports to grow 11 per cent this fiscal to about 20 lakh units.

Published on July 26, 2015 16:26