Bajaj Auto jumps 3% on September quarter performance

Shares of Bajaj Auto jump around 3 percent in early trade on Thursday as it beat analyst estimates by reporting a 13 percent rise in second-quarter profit, boosted by export earnings on weak rupee.

The two-wheeler manufacturer posted a net profit of Rs 837 crore for the three months to September 30 compared to Rs 741 crore in the same period a year earlier. Revenue rose 5.07 percent to Rs 5061.49 crore as against Rs 4,817.07 crore in the same quarter last fiscal. Analysts on an average expected profit of two-wheeler company to rise 7.3 percent year-on-year to Rs 795 crore, but revenues may fall 1.5 percent Y-o-Y to Rs 4,900 crore in September quarter due to weak domestic demand and strike at Chakan plant. Unit volume sales were, however, down by 8.37 percent during the second quarter this fiscal to 9,61,330 units as against 10,49,208 units in year-ago period. "Over the last five years, strategic initiatives taken to enter into difficult markets, like Africa, is yielding rich dividends. The benefits are now further enhanced with the depreciating rupee," the company said. Export revenue during the quarter stood at Rs 2,125 crore as against Rs 1,686 crore in the same period last fiscal, up 26 per cent. This was the highest export revenue, it added. In the first half of the fiscal, the company's turnover grew by 2 percent to Rs 10,386 crore as against Rs 10,187 crore in the year-ago period. At 10:08 hrs the stock was quoting at Rs 2,170.00, up Rs 45.85, or 2.16 percent on the BSE. (With inputs from PTI)