At the operating level, the performance was tad ahead of analysts' estimates.
Bajaj Auto, the two-and-three-wheeler maker, has reported an 18.8 percent year-on-year decline in September quarter standalone profit to Rs 1,138.2 crore, missing a CNBC-TV18 poll estimates which of Rs 1,212 crore.
"The profitability was lower on account of lower interest rates/yields during Q2 FY21 which resulted in reduction of treasury income and revision in corporate tax rates last year resulted in a one-time gain of around Rs 182 crore in Q2 FY20," company said.
Revenue from operations declined 7.2 percent year-on-year to Rs 7,156 crore in Q2 FY21, with sales volume declining 10.2 percent YoY to 10.53 lakh units and realisation rising 3.4 percent YoY.
Domestic two-wheeler segment registered a strong turnaround in September quarter as volumes grew by 6 percent, but commercial vehicles volumes declined 78 percent, while total exports fell 12 percent during the quarter YoY.
"Domestic two-wheelers registered a strong turnaround in the first half of the quarter driven by pent up demand. While the exact festive spike is awaited, early signs show (strong) indications of a recovery," Bajaj Auto said in its BSE filing.
"Industry grew by 7 percent in Q2 and our growth was in line with Industry and hence our market share was 18.2 percent in first half of FY21 against 18.1 percent in first half of FY20," the company added.
At the operating level, the performance was tad ahead of analysts' estimates. Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 0.9 percent year-on-year to Rs 1,266.2 crore, but margin expanded 110 bps YoY to 17.7 percent in Q2 FY21. The CNBC-TV18 poll estimates for EBITDA were at Rs 1,243 crore and margin at 17 percent for the quarter.
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Director General of Foreign Trade (DGFT) has restricted MEIS benefit on exports, per IE code, to a max of Rs 2 crore.
"The impact of the same, including reversal of MEIS for Q1FY21, is Rs 78 crore - else, the EBITDA margin would have been 19 percent," the company said.
As on September 2020, it has surplus cash and cash equivalents at around Rs 16,240 crore, increasing from Rs 14,232 crore as on June 2020.
The stock was trading at Rs 3,019.30, up 0.10 percent on the BSE at the time of publishing this copy.