Bajaj Auto Q1 Results: Net jumps 42% on strong operational performance in domestic market

economictimes.indiatimes.com:

Bajaj Auto reported better-than-expected earnings in the quarter ended June led by robust sales of motorcycles and commercial vehicles in the domestic market, a healthy model mix and better exchange realisation. Net profit at the Pune-based company rose 42% over the corresponding period last year while revenue from operations touched a record high of 29% over the year ago period. Profit after tax at the firm increased to Rs1165 crore over Rs1173 crore in the same period last year while revenue from operations advanced Rs10,310 crore from Rs8005 crore, the company said in a filing to the stock exchanges.

A Bloomberg poll of analysts had expected net profit of RsRs1656 crore. The strong operational performance was led by 73% jump in the domestic two-wheeler sales (including e-Chetak scooter) the maker of Pulsar and Discover motorcycles sold 542,931 units in the Q1 of FY24 against 314418 units in the corresponding quarter last year. A good show in the domestic market and better exchange realization boosted the operating profits taking it up to 19%, up 280 basis points year-on-year.

The strong operational performance in the domestic market cushioned the declines in exports. The challenges related to currency and other adverse macros pulled down the overall exports by 34% to 385,581 units over the same period last year. “Despite a weak export mix, Bajaj has reported healthy operating performance in Q1FY24.