Thursday 17 July 2014

Bajaj Auto Q1 net at Rs 740cr, operating profit margin weak

Bajaj Auto's total revenue grew 7 percent to Rs 5,252 crore in June quarter from Rs 4,911 crore in corresponding quarter of last fiscal. Revenue growth was higher than growth in volumes due to higher export realisation.

Bajaj Auto  , the two-wheeler maker, disappointed street with the first quarter (April-June) net profit rising marginally to Rs 740 crore compared to Rs 737.7 crore in same quarter last year, dented by weak operational performance. According to CNBC-TV18 poll estimates, analysts had expected net profit of Rs 821 crore on total revenue of Rs 5,214 crore for the quarter. Total revenue grew 7 percent to Rs 5,252 crore in June quarter from Rs 4,911 crore in corresponding quarter of last fiscal. Revenue growth was higher than growth in volumes due to higher export realisation. Overall realisation went up 1 percent Q-o-Q (up 6.2 percent Y-o-Y) at Rs 53,236 per unit due to 380 basis points sequential rise in share of exports to 44.7 percent. Overall volumes grew 0.9 percent Y-o-Y to 9.88 lakh units in Q1 with the domestic volumes falling 11.5 percent Y-o-Y to 5.47 lakh units. Considerable weakness in domestic volumes was due to competition and market share loss in Discover brand. However, exports grew 21 percent to 4.41 lakh units versus 3.62 lakh units during the same period. Reported operating profit declined to Rs 1,039 crore from Rs 1,056 crore year-on-year and margin slipped 170 basis points to 19.6 percent in the quarter ended June 2014.

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