Bajaj Auto's revenue during the quarter declined 9 percent to Rs 5,354.13 crore on lower sales volumes due to demonetisation.
Pune-based two-wheeler maker Bajaj Auto said profit in October-December quarter fell 4.7 percent to Rs 924.6 crore compared with Rs 970.6 crore in year-ago period. Better-than-expected operational performance and other income supported bottomline.
Revenue during the quarter declined 9 percent year-on-year to Rs 5,354.13 crore on lower sales volumes due to demonetisation.
The company sold 8.51 lakh units in the quarter ended December 2016, down 10.5 percent compared with 9.51 lakh units sold in same quarter last year as domestic as well as exports sales were down 5 percent and 17.5 percent, respectively.
Realisations during the quarter increased 1.4 percent to Rs 59,500 per unit from Rs 58670 per unit in previous quarter.
Earnings were ahead of expectations. Profit was estimated at Rs 888 crore on revenue of Rs 5,051 crore and operating income was expected at Rs 1,010 crore with margin at 19.9 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18.
Operating profit slipped 10.9 percent year-on-year to Rs 1,044 crore and margin contracted by 50 basis points to 20.6 percent in Q3. It was supported by lower raw material cost and other expenses.
Other income during the quarter grew by 31.7 percent to Rs 319.3 crore in the quarter ended December 2016.
Bajaj Auto said overall share in domestic motorcycle market stood at 18.5 percent in Q3FY17 against 17.4 percent in FY16. In December 2016, the company launched Dominar 400 motorcycle.
On international business, it said external factors such as economic crises and constraints in availability of foreign currency, amongst others, continued to drag performance.
"Nigeria is yet to witness a market recovery, countries like Egypt are still plagued with availability of US dollar currency and devaluation while sales in Iran was disrupted on new vehicle related norms," it explained.
At 13:25 hours IST, the stock was quoting at Rs 2,883.20, up Rs 57.20, or 2.02 percent amid high volumes on the BSE.