Bajaj Auto stock at lifetime high, rises 4%

Bajaj Auto is trading higher by 4% at Rs 1,699, its all-time high level, after improving operating profit margins by 100 basis points at 20.1% in Q2FY12 due to higher realisation from exports, operating leverage and the rationalization of spends on sales promotion.

The company has reported a 6% year-on-year (y-o-y) growth in net profit at Rs 726 crore for Q2FY12, against Rs 682 crore in the corresponding quarter of previous fiscal. Net sales grew 21% to Rs 5,342 crore against Rs 4,426 crore.

The auto maker has accounted Rs 95 crore as mark-to-market (MTM) loss on valuation of the contracts are charged to the profit and loss account.

“This is a purely notional loss and would get reversed on maturity of the underlying contracts. The company has protected its future export realisations by entering into range forward contracts," the company said in a filing to the stock exchanges.

A combined 309,979 shares have changed hands on the counter on both the exchanges till 1106 hours.