The Bajaj Auto stock fell up to 9.40 per cent in trade today after the firm reported 24.5 per cent increase in consolidated Q1 net profit at Rs 1,041.78 crore for the first quarter ended June 30, 2018 riding on robust sales.
However, net profit came below estimates. According to Thomson Reuters data, the firm was expected to report Rs 1,247 crore in net profit forecasted by average estimate of 18 analysts. The net profit also fell short of Rs 1,250 crore estimated by analysts Bloomberg tracks.
ICICI Securities saw Bajaj Auto reporting a 43 per cent rise in net profit (YoY) to Rs 1,370 crore for Q1 of current fiscal.
HDFC Securities in a note said, "Bajaj Auto 1Q numbers were below our estimates. Net revenue at Rs 7,420 crore (plus 36% YoY, 6% below estimates) led by 38% volume growth.
Earnings before interest, tax, depreciation and amortisation at Rs 1,280 crore (plus 36% YoY, 16% below estimates) with margin at 17.3% (flat YoY) impacted by higher volume from low margin economy segment bike(CT 100 and Platina together accounted for 49.7% of volume) and price cut taken in CT100 and Pulsar. Average profit after tax stood at Rs 1,115 crore (plus 13% YoY) vs estimates of Rs 1230 crore. "
The company reported consolidated net profit of Rs 836.74 crore in the same quarter of the last fiscal.
At 3:00 pm, the stock was trading 8.54% or 267 points lower at 2846.85 level. The stock fell to an intra day low of 2,820.25, down 9.40 percent. It closed 9.21% or 286 points lower at Rs 2,826 on the BSE.
The stock is down nearly 13% since the beginning of this year and has gained 2.80% during the last one year.
The stock has fallen after two days of consecutive gains.
7 of 50 brokerages rate the stock "buy", 21 'outperform', 15 "hold" and 7 "underperform" or "sell", according to Reuters.
Sales in Q1 stood at Rs 7,267.19 crore compared to Rs 5,740.3 crore in the year-ago period. The two figures are not comparable as sales for first quarter this fiscal are net of tax after GST implementation in July last year.
Total volume sales stood at 12,26,641 units in the first quarter as against 8,88,434 units in the same quarter last fiscal, a growth of 38 per cent, the company said.
Overall motorcycles sales stood at 10,29,964 units as compared to 7,75,714 units in the year-ago quarter, up 33 per cent.
The firm said its domestic motorcycle sales during the quarter stood at 5,94,234 units as against 4,26,562 units in the same period last fiscal, a growth of 39 per cent.
Domestic commercial vehicle sales stood at 94,431 units as against 52,347 units in the corresponding period last fiscal, up 80 per cent.
Motorcycle exports rose 25 per cent during the first quarter at 4,35,730 units as against 3,49,152 units in the same period of the last fiscal, it said.
Written and edited by Aseem Thapliyal