Bajaj Auto posts 3 per cent rise in third quarter net profit

16 Jan 2013

Bajaj Auto, India's second largest two-wheeler maker, has posted a 3 per cent rise in third quarter net profit at Rs819 crore, much in line with market expectations. The Pune-based company had posted a net profit of Rs795 crore for the same period a year ago.

The company's turnover rose 9 per cent to Rs5,413 crore during the quarter, which is its highest ever, and that coming in a challenging environment.

EBITDA margin declined to 20.1 per cent from 21 per cent a year ago, while on a quarter-on-quarter basis it rose 19.7 per cent.

Launch of new and differentiated products helped the company partially address the slowdown in the domestic market. As a result, the company recorded a growth of 7 per cent in domestic sales, higher than the industry growth of 4 per cent.

In the international market, Africa continues to do well with Nigeria recording its highest ever retails in December 2012.

In other international markets, demand remained subdued. Due to high inflation and adverse balance of payment position, respective central banks and governments are curtailing consumption. However, company's market share in these countries has improved.