The Pulsar and Triumph motorcycle maker is the fourth-largest two-wheeler manufacturer in India and leads sales in the premium 125-400 cc motorcycle s
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India’s Bajaj Auto reported its biggest margin expansion in three quarters on Tuesday, also boosting profit, as it sold more expensive motorcycles and margin-boosting three-wheelers. The Pulsar and Triumph motorcycle maker is India’s fourth-largest two-wheeler manufacturer and leads sales in the premium 125-400 cc motorcycle segments.
In the quarter ended June 30, Bajaj Auto’s sales in the segment – which includes the Pulsar range – grew a market-leading 38%, according to industry data, pushing its total two-wheeler sales volume 7% higher. Sales of three-wheelers, which cost less to make than other vehicles, grew roughly 10% in the first quarter.
This helped its core profit margin grow to 20.2% from 19% last year – its largest margin expansion since the quarter ended September 2023.
PROFIT BUMP
Bajaj Auto reported its fifth-straight quarterly profit growth, with standalone profit after tax rising nearly 20% year-on-year to 19.88 billion rupees ($238 million) as exports recovered.
Analysts had expected 19.84 billion rupees, per LSEG data.
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Exports, which had bottomed out in fiscal 2024 amid currency-related issues in Bajaj Auto’s key African markets, climbed nearly 7%. This accounted for around 37% of its total overall sales volume.
The segment’s sales volume had dropped 10% for fiscal 2024. The last time Bajaj Auto posted a quarterly profit drop was in the March 2023 quarter, when exports turned sluggish.
First Published Date: 16 Jul 2024, 22:11 PM IST