Weak volumes, higher costs dent Bajaj Auto's Q4 show

The company hopes for a better performance in FY18

Barring the margin blip, Bajaj Auto’s fourth (March) quarter numbers were broadly in line with Street expectation. Despite a weaker volume, down 10 per cent due to demonetisation and shift to BS-IV emission standards, revenue was Rs 5,212 crore, down only three per cent over a year ago and better than the Bloomberg consensus estimate of Rs 4,830 crore. 

The operating profit margin was 21.2 per cent, pegged back by higher raw material costs and expenditure from the transition to BS-IV, down 210 basis points (bps) over a year. Higher raw material costs and stiff competition across its categories will