Two-wheeler maker Bajaj Auto’s second quarter profit fell 0.6 percent year-on-year to Rs 1,193.58 crore, hit by slow sales growth, lower other income and higher raw material cost.Profit after tax in the year-ago quarter was at Rs 1,200.72 crore.
Revenue from operations grew by 2 percent to Rs 6,566.4 crore compared with Rs 6,432.3 crore in same quarter last fiscal, impacted by sales growth.Bajaj Auto sold 10.71 lakh units in the quarter ended September 2017, higher by 4 percent compared with 10.31 lakh units sold in corresponding quarter last fiscal. Motorcycles sales increased 2 percent while commercial vehicle sales rose 14 percent .
Operating profit was up 0.2 percent year-on-year at Rs 1,297 crore but margin contracted by 170 basis points to 19.7 percent in Q2.Numbers were ahead of estimates. Profit was estimated at Rs 1,082.3 crore for the quarter while operating profit was expected at Rs 1,228 crore with margin at 18.7 percent, according to average of estimates of analysts polled by CNBC-TV18.