Bajaj Auto, the maker of Pulsar and Discover motorcycles, said fourth quarter net profit slipped 1 percent YoY to Rs 766 crore (analysts expected Rs 709 crore), while revenue gained 2 percent to Rs 4,746 crore (analysts expected Rs 4,780 crore).
India's second largest motorcycle maker Bajaj Auto's fourth quarter net profit slipped lower-than-expected 1 percent year-on-year to Rs 766 crore, amid sluggish demand for two-wheelers.
Revenue rose 2 percent to Rs 4,746 crore in Jan-March, the Pune-based company said on Thursday.
Analysts on average had expected Bajaj Auto to report a net profit of Rs 709 crore on revenue of Rs 4,780 crore, according to a CNBC-TV18 poll.
Its operating EBITDA (earnings before interest, taxes, depreciation and amortization) in the quarter declined 4 percent to 931 crore, while EBITDA margin came in at 19.2 percent. FY13 margin was at 19.6 percent.
Bajaj Auto's total unit sales declined 4 percent in Jan-March to 9.81 lakh units. Its domestic motorcycle sales slipped 10 percent to 5.56 lakh units, while exports rose 8 percent to 3.04 lakh units.
In the three-wheeler space, domestic sales gained 13 percent to 60,079 units in the fourth quarter. Exports, however, fell 8 percent to 61,468 units.
Rajiv Bajaj, Bajaj Auto's MD, told CNBC-TV18 that domestic motorcycle sales in May were seen up 20 percent year-on-year due to the marriage season demand. That apart, he is not expecting much growth in the market right now.
The monsoon season will also play a key role on the domestic demand, especially in the second half.
Motorcycle exports, which contribute to 33 percent of total revenue, are expected to rise 10-12 percent this year, and he is also expecting a 10-12 percent growth in three-wheelers.
Bajaj Auto will launch 6 new Discover models starting July this year, in its bid to gain market share in the entry-level/commuter motorcycle segment. Four of the new Discover models will be positioned in the "mass market" Rs 40,000-50,000 range and the other two models will be premium products, according to Bajaj.
Bajaj Auto had cash and cash equivalents of Rs 5,706 crore, as of March 31.
The stock was down 0.3 percent at Rs 1,816 on NSE in afternoon trade.