Bajaj Auto Ltd.'s profit rose for the ninth straight quarter, beating estimates, and its margin expanded as raw material costs fell.
Net profit of the two- and three-wheeler maker rose 14.5 percent year-on-year to Rs 1,261.6 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 1,194-crore consensus estimate of analysts tracked by Bloomberg.
Sales of the company fell 4.6 percent over last year to nearly 12 lakh units between October and December. While its domestic sales fell 12.9 percent year-on-year to 6.39 lakh units during the quarter, Bajaj Auto reported its highest ever quarterly exports at 5.62 lakh units. “The exports now contribute 43 percent of our net sales,” the company said in a statement.
That aided Bajaj Auto's top line. Revenue rose 2.7 percent on a yearly basis to Rs 7,639 crore, against the Rs 7,059-crore estimate.
The Pune-based motorcycle maker's earnings before interest, tax, depreciation and amortisation rose 12.8 percent on a yearly basis to Rs 1,367.3 crore—against the Rs 1,267-crore estimate.
Operating margin expanded to 17.9 percent—the highest in six quarters—from 16.3 percent a year ago. Analysts had pegged the margin at 17.9 percent. The cost of raw materials fell 6 percent year-on-year to Rs 4,728 crore.
The Ebitda margin was very strong as the street was expecting only 15.5-16 percent, Ankit Merchant, auto analyst at SMC Institutional Equities, told BloombergQuint in an interview. “This shows their exports has done really well.”
Rahul Bajaj To Be Non-Executive Chairman
Rahul Bajaj, whose term as executive chairman and whole time director ends on March 31, 2020, will continue as a non-executive chairman effective April 1, 2020, the company said in an exchange filing.
Shares of Bajaj Auto remained volatile after the results announcement. The stock has declined 1.4 percent during the quarter ended December, compared with the Nifty Auto Index's 1.8 percent fall.
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