Bajaj Auto posts 21% jump in net at Rs 11 billion, shares slump 8.73%

Motorcycle and commercial vehicle volumes in the domestic market rose 44 per cent to 688,665 units over a year ago

A robust growth in motorcycle and commercial vehicle volumes drove Bajaj Auto’s net profit by 21 per cent to Rs 11.15 billion in the April to June quarter, against Rs 9.24 billion a year ago. The net was lower than Rs 12.5-billion estimated by Bloomberg analysts. The company’s revenue rose 26.7 per cent to Rs 74.19 billion over a year-ago period, missing the consensus forecast of Rs 77.91 billion, too.

Lower-than-expected earnings by the Pune-based firm, which makes Pulsar and Discovery bikes, triggered a sell off by the investors. Shares slumped 8.73 per cent to close at Rs 2,841 a