Bajaj Auto Q2 results: Profit drops 19% to Rs 1,138 crore, revenue down 7%

Bajaj Auto on Thursday reported a 19 per cent decline in its net profit at Rs 1,138 crore in July-September quarter of FY21, dented by lower interest rates which resulted in reduction of treasury income. The Pune-based auto major had posted net profit of Rs 1,402.42 crore in the corresponding period of last fiscal, the company said in a regulatory filing. 

Total revenue from operations stood at Rs 7,156 crore in Q2 FY21 as against Rs 7,707 crore in the same period last year, registering a year-on-year decline of 7 per cent. 

On the consolidated basis, net profit was down 21.6 per cent YoY at Rs 1,193.7 crore, while revenue fell 7.15 per cent YoY to Rs 7,155.86 crore.

On the operational front, Earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA) stood at Rs 1,300 crore compared to Rs 1,305 crore in the year ago period. The EBITDA margin rose to 18.2 per cent as against 16.9 per cent earlier. 

Also Read: Bajaj Auto share price trades lower ahead of Q2 earnings

Operating profit of the company was down by 1 per cent to Rs 1,233 crore versus Rs 1,242 crore in the corresponding period last year. 

As on September 30, 2020, surplus cash and cash equivalents stood at Rs16,240 crore as against  Rs 14,232 crore as on June 30, 2020 and Rs 14,322 crore as on  March 31, 2020.

During July-September quarter, the company sold 10.53 lakh units against 11.73 units in Q2 FY20, down 10 per cent YoY. The domestic sales declined 9 per cent YoY at Rs 5.73 lakh units, while exports was down 12 per cent at 4.79 lakh units.

Also Read: Bajaj Finance Q2 results: Profit falls 36% to Rs 965 crore, NII up 4%

"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. Industry grew by 7 per cent in Q2 and our growth was in line with Industry and hence our market share was 18.2 per cent in H1FY21 vs 18.1 per cent in H1FY20," Bajaj Auto said.

On COVID-19 pandemic, Bajaj Auto said that the crisis is unprecedented and the company has also experienced its adverse impact. "With gradual resumption of operations, plants have started moving towards normalcy, though challenges still exist. While the Company continues to work very closely with all the stakeholders, the situation continues to be still evolving," it said.

Meanwhile, shares of Bajaj Auto were trading at Rs 3,014.75, down 0.05 per cent, against previous closing price of Rs 3,016.35 on the BSE.