Bajaj Auto’s Profit Grows First Time In Five Quarters 

Bajaj Auto Ltd.’s profit rose first time in five quarters but fell short of estimates.

The two- and three-wheeler maker’s net profit rose 3 percent on a yearly basis to Rs 952 crore in the October-December period, according to its stock exchange notification. That compares with Rs 1,072 crore that analysts surveyed by Bloomberg had forecast.

Revenue of the Pune-based automaker rose 25.7 percent year-on-year to Rs 6,369 crore. That’s higher than the estimated Rs 6,235 crore.

The company’s sales during the quarter rose 6 percent on a yearly basis to 33 lakh units, led by a 16 percent jump in exports as volumes in Nigeria continue to improve. Bajaj Auto said it is on track to exceed the exports target for the financial year ending March. Domestic sales remained flat at 19 lakh units in the three months ended December.

Operating income or the earnings before interests, tax, depreciation and amortisation rose 17.9 percent year-on-year to Rs 1,231 crore, while the operating margin contracted 619 basis points to 19.3 percent during the period.

Shares of Bajaj Auto extended losses to fall as much as 4.9 percent after the announcement, compared with a 0.47 decline in the benchmark Sensex.