Bajaj Auto, Indiaâ€™s fourth largest two-wheeler maker, on Friday beat analysts' expectations with a 34.67 percent rise in net profit for the March quarter, led by a sustained growth in exports and a revival in domestic demand.
The company's net profit came in at Rs 1,079.87 crore, compared to the Rs 1,042 crore average of 16 analystsâ€™ estimates in a Reuters poll. Net profit for the same quarter in 2016-17 had come in at Rs 801.82 crore.
Net sales of the company came in at Rs 6,650.81 crore, a growth of 29.88 percent year on year. The Reuters poll had pegged the bike maker's revenue to come in at Rs 6,699 crore.
The Pune-based company clocked total sales (both two wheelers and three wheelers) of 1.04 million units during the quarter ended March, 33 percent higher than the 787,468 units sold in the same quarter in 2016-17, according to data from the Society of Indian Automobile Manufacturers.
Domestic sales of two-wheelers grew 20 percent on year to 497,587 units, while two-wheeler exports rose 25 percent over the same period to 358,802 units.
The share of two-wheeler exports in Bajaj Auto's total sales declined marginally to 34.3 percent in the quarter, as against 36.5 percent at the end of the corresponding quarter last year.
"We are expecting another 150bps gain in market share in Q1 over and above the 150bps we gained during Q4. We would like to end FY19 with a share of 26 percent. We are getting our act nice and firm in the motorcycle segment," S Ravikumar, Head - Business Development, Bajaj Auto told CNBC-TV18.
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.
06:50 Cox & Kings shares lose 4% as company posts sharp fall in Q1 profits29
06:35 Hathway Cable stock corrects 7% after company posts loss in Q130
06:18 Suven Life Sciences stock dips 2% as Q1 profit jumps sharply but margin contracts28
06:06 Patel Engineering Company stock jumps 14% as company posts strong profit for Q1220