Bajaj Auto posted its best ever quarterly performance on Thursday, with net profit crossing Rs 1,000 crore for the first time. The market, however, gave it a thumbs-down, as sales and volume growth remained muted.
Shares of Bajaj Auto dipped 4% to Rs 2,510, declining 5.5% from their intra-day highs on the NSE, after the company reported 37% year-on-year (YoY) jump in net profit at Rs 1,015 crore for the quarter ended June 2015 (Q1) mainly on account of higher
Being at number four wouldn't exactly be a comfortable position for the one-time king of the Indian two-wheeler market. But that's where Bajaj Auto was placed in May, after Hero MotoCorp, Honda and even TVS Motor, a company once forgotten by many.
For most companies, the quarter ended June is expected to be among the worst in recent times. However, Rajiv Bajaj, managing director of the Pune-based Bajaj Auto, tells Swaraj Baggonkar it would be among the best in his company’s history.
The benchmark indices are consolidating the gains witnessed in the recent past leading up to the runaway rally seen in the previous session.At 10.30am, the Sensex was at 28,090, higher by 69 points or 0.2% and the Nifty was at 8,471, up 19 points.
Shares of Bajaj Auto have moved higher by 2.4% to Rs 2,586 on the National Stock Exchange (NSE) after the company sold 331,317 units in June 2015, representing a year-on-year (yoy) growth of 8%, the highest in past nine months.
Playing a big gamble then, Yamaha India launched the R15 in 2008 as the country's first mass market full faired motorcycle that not only offered superlative performance but was reasonably priced as well.
Indian two-wheeler makers are on a scooter joyride. The two-wheeler, which had lost share to motorcycles, have cornered about one-fourth of the market in about 11 states and the North East region. Only 3 states enjoyed such a share four years ago.
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.