Bajaj Auto Reports Strong Q2 Performance with 20% YoY Profit Growth

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Bajaj Auto, renowned for its popular motorcycle models such as the Dominar, Pulsar, and Avenger, delivered impressive financial results on Wednesday. The company announced a standalone net profit of INR 1,836.1 crore for the period spanning July to September, marking a substantial 20% year-on-year increase that exceeded analysts’ expectations. This robust quarterly performance was primarily driven by improved sales of high-margin three-wheelers and premium motorcycles.

In terms of revenue, Bajaj Auto’s revenue from operations registered a 5.6% growth, reaching INR 10,777.3 crore for the second quarter of the current fiscal year. It’s worth noting that this represents the company’s slowest second-quarter revenue growth over the past three years.

Analysts had estimated Bajaj Auto’s quarterly net profit to be INR 1,725 crore and revenue to be INR 10,800 crore, making the company’s actual results notably higher.

However, Bajaj Auto did face an eight percent decline in overall sales volumes during the three-month period, primarily driven by a 13% decrease in the two-wheeler segment.

Before the results were announced, the company’s shares experienced a marginal dip of 0.1%, closing at INR 5,137.35.

It’s noteworthy that Bajaj Auto was the first among the country’s two-wheeler manufacturers to release its quarterly financial performance.

Prior to the earnings announcement, the company’s stock traded slightly above INR 5,143.8 on the Bombay Stock Exchange (BSE).

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