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Last Updated : Oct 25, 2018 01:54 PM IST | Source: CNBC-TV18

Don't see any reason for EBITDA to be disrupted in the second half of this fiscal: Rajiv Bajaj

The company on October 24 said it will not take any price cut in the export market as it is doing well and the key markets are fairly strong.

CNBC TV18 @moneycontrolcom

Two-wheeler manufacturer Bajaj Auto is expecting the EBITDA to maintain the current position in the second half of the fiscal year as well, said Rajiv Bajaj, managing director of the company.

“Our EBITDA is in a very good position and I think we don’t see any reason why that will be disrupted in the second half," Bajaj told CNBC-TV18.

The company on October 24 reported a 3.7 percent rise in second-quarter net profit but missed analysts' estimates, sending its shares down by 4 percent.

The profit after tax stood at Rs 1,152.48 crore for the three months ended September 31 versus Rs 1,119 crore in the corresponding period last year. Total revenue from operations rose 21 percent to Rs 7,987 crore. The EBITDA margin for the second quarter was at 16.8 percent compared to 19.8 percent on a year-on-year basis.

Talking about the business, Bajaj said, "As far as the domestic motorcycle business is concerned, I must break it into two parts. In the sports segment, which is about 40 percent of our volume, again in the second half, it will remain stable or it may improve a tad given the product plan that we have. As far as the commuter segment is concerned, I think it will remain the same as it has been in the first half simply because we are determined to stay the course in this segment in terms of our determination to gain volume and gain share."

“On the export front, we will progressively move to a situation where we will gain almost Rs 4 to the dollar on everything that we export. So that is going to be a big gain for us," he mentioned.

The company on October 24 said it will not take any price cut in the export market as it is doing well and the key markets are fairly strong.

"We are not forced to take any cuts at this point in time, said Rakesh Sharma, chief commercial officer, Bajaj Auto. "Our retail franchise, our competitive positions and key markets are fairly strong. The extra realisation which we have got is marginal at this point in time but which is expected to increase particularly as we enter the new financial year.”

 

Source: CNBC-TV18
First Published on Oct 25, 2018 01:46 pm
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