Improving product mix aids Bajaj Auto's better-than-expected show in Q2

Volume decline was offset by price hikes and lower commodity costs

Bajaj Auto posted a better-than-expected performance in the July-September quarter beating analysts’ estimates across all parameters. Though overall volumes declined by 12 per cent over the year-ago quarter, improved realisations arrested the decline in revenue.

Revenue for the Pune-based company fell by 4 per cent, even as the volume decline was offset by better product mix, lower commodity costs, price hikes, and exchange rates.

“It was a bad quarter for the motorcycle industry and there was little elbow room. But we have maintained our market share and improved profitability,” said Rakesh Sharma, executive director, Bajaj Auto.

Volume decline was led