The manufacturer of the Pulsar and Platina motorcycles sold almost 1.2 million vehicles during the quarter, 23% more than the preceding quarter and 1% higher than a year earlier. Domestic sales almost doubled quarter-on-quarter to more than 694,000 units. Exports declined 21% sequentially to 581,000 units as the global economy faces headwinds.
The performance highlights the benefits of the Pune-based automaker’s diversification across the globe, limiting the impact on its sales from troubles in one market.
Revenue grew 16% from a year earlier to ₹10,203 crore. Operating profit, or earnings before interest, tax, depreciation, and amortisation (Ebitda), rose 26% to ₹1,759 crore. The company reported a standalone profit of ₹1,530 crore, 20% more than the same period last year.
A strong performance in the ASEAN countries, especially the Philippines, helped partially offset setbacks in other markets, Bajaj Auto said. Favourable foreign exchange rates as the rupee depreciated against the dollar also helped.
The recovery in the domestic market was driven by better consumer demand as well as a build-up of inventory with showrooms in anticipation of higher sales during the Diwali festive season.
“Continued improvement in semiconductor supplies enabled a healthy build-back of channel inventory ahead of the festive season,” the company said in a press statement.
With this, the company added ₹2,450 crore of operating cash flows in the first half of the year. Surplus funds with the company totalled ₹15,538 crore as of September 30.
The stock of Bajaj Auto closed 1% lower at ₹3,569 on the BSE Friday, when the benchmark Sensex ended 1.2% higher. The results were announced after the market close.