Financial Insights

Bajaj Auto stock unfazed by the 22% dip in profits

On Thursday, Bajaj Auto published disappointing results as it reported a 22% decline in its net profit. Its current net profits for the quarter was Rs 1,214 crores. However, its revenue grew by 1% to Rs 9,022 crores YoY on the back of price hikes by the company to account for the rise in raw material prices. Its EBITDA contracted to 15.1%.

The company sold 4,71,284 units, down by 20% YoY. the demand from rural markets, which constitute over 50 percent of two-wheeler sales, continue to lag at the moment, as crop losses due to incessant rains and floods in Southern states, high acquisition costs, as well as spike in fuel prices have affected buying sentiments. Even the marriage season failed to ignite two-wheeler sales, except in one or two states, says Federation of Automobile Dealers’ Association (FADA).

However, even though the company reported such poor performance, its stock remains unfazed by the results. Its stock opened near its previous day closing and has climbed over 4%.

Highlight by Aman Agarwal.

Related Articles

Back to top button