Bajaj Auto net profit rises 22% to Rs 1,402 crore in September quarter, shares soar

Indian auto major Bajaj Auto reported a 22 per cent increase in net profit for the quarter ended September 30, 2019 at Rs 1,402.42 crore. The company had registered a net profit of Rs 1,152.48 crore during the corresponding quarter last fiscal.

Bajaj Auto's total revenue from operations for the second quarter of current fiscal stood at Rs 7,707.32 crore down 4 per cent from Rs 8,036.64 crore reported in the year-ago period. Total income of the company declined 3 per cent to Rs 8,100.76 crore during the quarter under review, as opposed to Rs 8,346.74 crore in the same quarter last year.

The operating profit of Bajaj Auto slid 9 per cent to Rs 1,242 crore during the September quarter of this fiscal, as compared to Rs 1,369 crore in the corresponding period last fiscal. Earnings before interest, tax, depreciation and amortisation (EBITDA) also declined by 9 per cent to Rs 1,305 crore during the period under review, in comparison to Rs 1,441 crore in the Q2 FY19. Bajaj Auto's EBITDA margin was recorded at 16.9 per cent.

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After payment of dividend and tax thereon, surplus cash and cash equivalents stood at Rs 15,986 crore as on September 30, 2019, Bajaj Auto stated in a regulatory filing. The figure was Rs 17,126 crore as on June 30, 2019, it further added.

Bajaj Auto sold 5.21 lakh motorcycles in the domestic market during the September quarter, down 25 per cent from 6.92 lakh in the same quarter last year. In overseas market, the company sold 4.62 lakh motorcycles during the quarter under review, up 7 per cent from 4.33 lakh in the year-ago period.

In total, Bajaj Auto sold 11.73 lakh vehicles (motorcycles and commercial vehicles) during Q2 FY20, 12 per cent less than 13.39 lakh during Q2 FY19.

Post the results, shares of Bajaj Auto climbed to fresh 52-week high on both BSE and NSE. Bajaj Auto stock price rose 3 per cent intraday to Rs 3,217.1 on BSE and 3.6 per cent to Rs 3,237.35 on NSE today. Volume-wise, shares amounting to 0.63 lakh and 15.44 lakh changed hands on BSE and NSE counter by 2:00 pm, both above the 5, 10 and 30-day average volume traded on the stock. Market depth data on BSE depicts 53 per cent buying against 47 per cent selling by traders at the share value of Rs 3,193.

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