The net profit of Bajaj Auto, the country's third-biggest two-wheeler producer, slumped 18.6 per cent in the final quarter (Q4) of 2014-15, the third fall in a row as domestic and export volumes faced severe headwinds.
Shares of Bajaj Auto have moved higher by 4.3% to Rs 2,244, bouncing back nearly 6% from their intra-day lows on the NSE, although the company reported a 18.6% year-on-year decline in net profit at Rs 622 crore for the fourth quarter ended March 2015
A few sectors are expected to report double-digit earnings growth in the March quarter. The automobile sector is one. While two-wheelers have seen volumes come under pressure, passenger cars and commercial vehicles fared better.
Bajaj Auto sales continue to disappoint due to its slow-moving motorcycle portfolio, especially the Discover brand. Sales performance in March was impacted by slowdown in Egypt and Nigeria, its key export markets.
Bajaj Auto, India’s third-biggest two-wheeler seller, on Monday reported a 22 per cent slide in overall two-wheeler volumes in March at 209,937 units, against 270,578 units sold in the same month last year.
Bajaj Auto's exports declined by 16% during the month to 98,703 units from 1,18,183 units in the corresponding period a year ago, the two-wheeler major said in a filing to the Bombay Stock Exchange (BSE).
Budget bike brands Platina and CT100 are being used by Bajaj Auto, India's third largest two-wheeler seller, to break the dominance of Hero Motocorp after the Discover brand could not match its expectations.
Even as Bajaj Auto, India's third biggest two-wheeler seller, tries to put brand Discover on a corrected path, it has launched two products in the market - Platina ES and CT100 - to counter the fall in sales.