Bajaj Auto profit propped up by weak rupee

REUTERS - Bajaj Auto, India's second-largest motorcycle maker, reported a flat first-quarter profit that matched expectations as its exports benefited from a weaker rupee, offsetting sluggish sales volumes.

The company posted a net profit of 7.38 billion rupees for the quarter that ended in June compared with 7.18 billion rupees a year ago. Net sales rose 2 percent to 48.09 billion rupees.

Analysts, on average, had expected a profit of 7.47 billion rupees on revenues of 48.65 billion rupees, according to Thomson Reuters I/B/E/S.

Export volumes, which account for about a third of total sales, fell about 13 percent in the quarter, but Bajaj reaped the benefits of a weak rupee that lost nearly 9 percent against the U.S. dollar during the period.

"Taking into account the current trend of the rupee vis-a-vis the U.S. dollar and the current position of hedged contracts, a further benefit on account of depreciating rupee would accrue to the company in the coming quarters," Bajaj said in a statement.

(Reporting by Aradhana Aravindan in MUMBAI)