Bajaj Auto reports second highest quarterly profits in Q2 FY16

Bajaj Auto has reported a net profit of Rs 933 crore during Q2FY16, a 58% growth over Q2FY15. This is the second highest ever PAT reported by the company in a quarter, after it had crossed the Rs 1,000 crore mark in Q1 this year.

Shourya Harwani By Shourya Harwani calendar 21 Oct 2015 Views icon3412 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Bajaj Auto reports second highest quarterly profits in Q2 FY16

Bajaj Auto has reported a net profit of Rs 933 crore during Q2 of 2015-16, a 58 percent growth over Q2 of 2014-15. This is the second highest ever PAT reported by the company in a quarter, after it had crossed the Rs 1,000 crore mark in Q1 this year. Turnover during the July-September 2015 quarter stood at a record Rs 6,250 crore. Revenue from exports grew 4 percent on year to touch Rs 2,836 crore.

With the highest ever exports of 434,000 motorcycles and over 86,000 three-wheelers, Bajaj Auto's international business contributes to around 47 percent of the company's net sales. During the July-September quarter, Bajaj Auto sold 903,907 motorcycles in domestic and export markets.

In a press statement, the company says that its strategy to build its 'dominance' in the sports and super-sports segments have yielded good results. The Pulsar RS 200, along with the KTM motorcycles sold over 22,000 units during the quarter.

In the entry level segment, the new CT 100 commuter bike, launched in February this year, along with the Platina sold around 216,000 units, taking the company’s market share to 37 percent in Q2 from 23 percent a year ago, it said.

The new launches this year have helped Bajaj Auto increase its share in the domestic motorcycle market to nearly 18 percent in the first half of FY 2015-16. The market share during the H1 of 2014-15 stood at 17 percent. In the commercial three-wheeler business, Bajaj Auto sold 153,000 units in domestic and export markets during Q2. With strong sales in the quarter, the operating EBITDA margin of the company was 22.1 percent during the July-September period against 20.8 percent during the same period of last year.

With the planned launch of new Avenger variants this month and introduction of a new commuter segment brand in Q4, Bajaj Auto is expecting domestic sales to surge going forward and also hopes to increase its market share. The company has also recently commenced exports of its indigenously developed quadricycle, Qute to 16 international markets across Asia, Africa, Latin America and Europe. However, the domestic launch of Qute still awaits the Supreme Court verdict and the next hearing is slated for 2nd December 2015.  

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