See domestic demand softening, no price hike for now: Bajaj

Bajaj Auto, India's second-largest motorcycle manufacturer, posted a 19% rise in its third-quarter net profit, little over market estimates.

Analysts on average had expected a net profit of Rs 819 crore in the third quarter, according to a CNBC-TV18 poll. Speaking to CNBC-TV-18, managing director Rajiv Bajaj said, the company expects to maintain EBITDA margin at 20% levels. "We have lost a percent in market share in domestic market in third quarter compared to the second quarter," he informed. The maker of the Pulsar and Discover range of motorcycles had MTM losses to the tune of Rs 58.86 crore in the third quarter as it had entered into foreign exchange contracts to hedge highly probable forecast transactions. The loss on derivatives will be written back, confirms Bajaj who said, the company is pricing exports at Rs 47 to a dollar. "The domestic motorcycle volumes have grown by 7%," he said. Bajaj Auto's net sales in the three-month period also rose lower than expected 21.6% from a year ago at Rs 4,839.95 crore, compared with analysts forecast of Rs 5,032 crore. Going forward, Bajaj does not see any room for price hike in January-March quarter.