Bajaj Auto Q3 net profit up 10.5 per cent, beats estimates

Motorcycle maker Bajaj Auto reported a better-than-expected 10.5 percent increase in quarterly net profit, helped by a foreign exchange gains and as higher revenues from exports helped offset weak demand for its vehicles.

The company, for whom exports contribute more than a third of sales, said net profit for the October-December quarter was 9.05 billion rupees, compared with 8.19 billion rupees a year ago.

The company also benefited from a foreign exchange contract related gain of nearly 1 billion rupees during the quarter.

The average estimate of 15 analysts was for a profit of 8.82 billion rupees, according to Thomson Reuters I/B/E/S.

Export revenue rose 23 percent in the quarter from a year earlier, the company said on Thursday, although total sales in volume terms fell nearly 12 percent.

Its operating margin -- said to be the best in the industry -- was 21.1 percent in the quarter, wider than 19.8 percent reported a year ago.

Shares of the company, which is India's biggest exporter of two-wheeler vehicles and three-wheelers such as tuk tuks, were trading up 0.8 percent at 1,908 rupees in afternoon trade in a Mumbai market that was down 0.3 percent.

EDITORIAL OF THE DAY

  • Protocols need to be quickly put in place for the success of Digital India

    The government has kicked off Digital India initiative in style. Companies too have queued up in large numbers with bagfuls of money.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Simon J Evenett

Will Germany be able to deliver?

The BRICS aren’t the only countries whose stature has grown ...

Rajgopal Nidamboor

Up the ante of your conscious existence

It sounds cryptic, but is not as complex as it ...

Gautam Gupta

The ‘fake’ issue needs to be taken seriously

E-commerce players are witnessing unbelievable growth globally. Competition is increasing ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture