Business Standard

Despite headwinds, Bajaj Auto delivers on the margin front in Sept quarter

Higher premium bike sales offset lower export incentives, collapse of 3W sales

Bajaj Auto
Premium

Even as overall two wheeler sales for the quarter were down 2 per cent y-o-y, three wheeler sales are down 53 per cent

Ram Prasad Sahu Mumbai
Despite lower volumes, Bajaj Auto’s September quarter operating performance was better than the Street’s estimates, on account of higher margins. 

Though volumes were down 10 per cent over the year-ago quarter and revenue fell 7 per cent, the company posted a 110-basis points (bps) operating profit margin expansion to 17.2 per cent in the second quarter. 

In the domestic two-wheeler segment, higher sales of premium vehicles were the biggest reason for the margin outperformance. 

The company highlighted that strong sales of the more profitable Pulsar franchise in the 125cc category helped it improve market share in this category to 16 per cent, compared

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 22 2020 | 7:26 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com