Bajaj Auto posts 22% decline in Q2 consolidated net profit to Rs 1,194 crore

Industry grew by 7 per cent in the second quarter and the company's growth was in line with industry, Bajaj auto said. (Photo: Bajaj)


Bajaj Auto on Thursday posted a 21.62 per cent fall in its consolidated net profit to Rs 1,193.97 crore for the quarter ended September 2020. The company had reported a net profit Rs 1,523.31 crore in the July-september period of previous fiscal, the two-wheeler major said in a regulatory filing.

Its revenue from operations declined to Rs 7,155.86 crore during the period under review as compared with Rs 7,707.32 crore in the year-ago period, it said.

The company reported total volumes of 10,53,337 units in second quarter, down 10 per cent from 11,73,591 units in July-September quarter of 2019-20.

However, on the domestic front, it saw an increase of 6 per cent at 5,50,194 units during the second quarter as against 5,21,350 units in same period last fiscal.

“Domestic two-wheelers registered a strong turnaround in the first half of the quarter driven by pent up demand. While the exact festive spike is awaited, early signs show (strong) indications of a recovery,” the two-wheeler major noted.

Industry grew by 7 per cent in the second quarter and the company’s growth was in line with industry, Bajaj auto said.

“Hence, our market share was 18.2 per cent in the first half of the fiscal as against 18.1 per cent in first half of 2019-20,” it added.

However, domestic commercial vehicle volumes continue to remain muted and are dependent on return of adequate short distance mobility demand, the company said.

“Within CV, cargo has fared better than passenger and our share has increased to 37 per cent which is the highest ever. Overall, our market share was 53.3 per cent,” it added.

As on September 30, the company’s surplus cash and cash equivalents stood at Rs 16,240 crore as against Rs 14,232 crore as on June 30, 2020, and Rs 14,322 crore as on March 31, 2020, Bajaj Auto said.