Bajaj Auto reported better earnings for the quarter ended September 30,pushing its shares 2% higher in afternoon trade. Bajaj Auto shares were up 2% at Rs.3,186 as compared to a 0.44% rise in Sensex.
The automaker’s profit rose 22% to Rs.1,402 crore, aided by a tax expense reversal of Rs.182 crore due to the recent lowering of corporate tax rate.
Revenue from operations dipped 4% year on year to Rs.7,707 crore. Operating margin also dipped to 16.9% from 17.9% a year earlier.
Total volumes during the quarter dipped 12% to 1,173,591 units as compared to 1,339,444 units in the same quarter of the previous quarter.
In retail terms, the decline was 14% in billing terms, the decline was 21%. Performance of Bajaj Auto was in line with the industry; retail market share at about 20%,” Bajaj Auto said in a statement.
Bajaj Auto had launched an all new Pulsar 125 and has sold over 40,000 units.
Its international business contributed to about 41% of the automaker’s net sales. In terms of international business, Bajaj Auto recorded sales of over 544,000 units for Q2.
After payment of dividend and tax of Rs.2,072 crore, surplus cash and cash equivalents stood at Rs.15,986 crore as on 30th September 2019, Bajaj Auto said.