Bajaj Auto Ltd. on Friday beat analyst expectation to report 34.67 percent rise in its net profit for the quarter ending March 31, led by sales in domestic and overseas markets.
Net profit surged to Rs 1079.87 crore as compared to Rs 801.82 during FY17. Analysts had predicted a profit of Rs 1042 crore.
The company’s net sales grew 29.89 percent on y-o-y basis estimated at Rs 6650.81 crore.
“Bajaj Auto Q4 numbers were broadly in line estimates. The company has witnessed strong volume recovery in past six months led by plugging of key gaps in its product portfolio. New launches like CT100 ES, Platina ES, and Platina Comfortec managed to lift average volumes. The company has also re-launched the Discover in the economy bike segment to regain its market share,” said Abhishek Jain, an analyst at HDFC Securities.
The Pune-based automaker clocked total sales of Rs 1.04 million units during the Jan-March quarter was 33 percent higher than 787,468 units sold in the same quarter previous year, a media report said.
Domestic sales of two-wheelers grew 20 percent on year to 497587 units while its exports surged 25 percent as compared to 358,802 units last year.
However, the share of the two-wheeler exports in Bajaj Auto’s total sales declined marginally to 34.3 percent as against 36.5 percent in the corresponding quarter FY17.
The company’s board of directors recommended a dividend of Rs 60 per share, and the total amount of dividend and tax thereon amounts to Rs 2,093 crore.
At 3.29 pm, shares of Bajaj Auto were trading at Rs 2,780 on the BSE, down by 1.39 percent.