Revenue from operations grew by 2 percent to Rs 6,566.4 crore compared with Rs 6,432.3 crore in same quarter last fiscal.
Two-wheeler maker Bajaj Auto's second quarter profit fell 0.6 percent year-on-year to Rs 1,193.58 crore, hit by slow sales growth, lower other income and higher raw material cost.
Profit after tax in the year-ago quarter was at Rs 1,200.72 crore.
Revenue from operations grew by 2 percent to Rs 6,566.4 crore compared with Rs 6,432.3 crore in same quarter last fiscal, impacted by sales growth
Bajaj Auto sold 10.71 lakh units in the quarter ended September 2017, higher by 4 percent compared with 10.31 lakh units sold in corresponding quarter last fiscal. Motorcycles sales increased 2 percent while commercial vehicle sales rose 14 percent YoY.
Operating profit was up 0.2 percent year-on-year at Rs 1,297 crore but margin contracted by 170 basis points to 19.7 percent in Q2.
Numbers were ahead of estimates. Profit was estimated at Rs 1,082.3 crore for the quarter while operating profit was expected at Rs 1,228 crore with margin at 18.7 percent, according to average of estimates of analysts polled by CNBC-TV18.
"We will maintain EBITDA margin of above 20 percent in Q3 & Q4FY18," S Ravikumar, President-Business Development, Bajaj Auto said in an interview to CNBC-TV18.
He further said exports have been doing quite well and Nigeria has held on nicely.
On the international business front, the company said order for October was healthy and outlook for November and December 2017 was encouraging. "We are on track to exceed target for the year."
Other income during the quarter fell 13.3 percent year-on-year to Rs 297.2 crore due to lower investment income.
Its cash and cash equivalents at the end of September 2017 stood at Rs 12,699 crore after payment of dividend and tax thereon amounting to Rs 1,888 crore, against Rs 13,256 crore in June quarter.At 13:17 hours IST, the stock price was quoting at Rs 3,295.00, up Rs 73.20, or 2.27 percent after hitting a record high of Rs 3,310.20 per share.