Share price of Bajaj Auto dropped over 2% and later ended with moderate losses on Wednesday after the automaker reported a weak set of numbers for the first quarter ended June 2020. The two-wheeler manufacturer reported a net profit dip of more than half to Rs 528.04 crore YoY as pandemic induced restrictions stalled operations during most of the first quarter. This was 53% lower in comparison to Rs 1,125.67 crore during the corresponding period last fiscal.
Following the result update, shares of Bajaj Auto touched an intraday low of Rs 2928.55, falling 2.52% against the last close of Rs 3,004.35 on BSE. The stock price of Bajaj Auto has fallen after 5 days of consecutive gains. The Bajaj Auto stock is trading higher than 5, 20, 50, 100 and 200-day moving averages.
Bajaj Auto stock has fallen 6.28% since the beginning of the year 2020. The total market capitalisation of the large-cap stock stood at Rs 85,509 crore as of today's closing bell.
The fall in the stock price was in line with the S&P BSE Auto sector on BSE, that fell 1.29% to 16,305, with Sensex closing 0.16% lower.
Company's sales fell 61% year-on-year to Rs 2,948.62 crore in the quarter ended June 2020 from Rs 7,565.01 crore.
"Q1FY21 has been an extremely challenging quarter due to the unprecedented Covid-19 pandemic. Lockdown and other precautionary measures resulted in disrupted supply lines and a sharp decline in overall demand," Bajaj Auto said in its regulatory filing today. The stock closed 0.63% on NSE at Rs 2,985.40 and 0.65% lower at Rs 2,984 on BSE.