Bajaj Auto posted an 18.84 per cent year-on-year (Y-o-Y) drop in net profit at Rs. 1,138.29 crore for the quarter between July and September this year, while domestic sales recovered thanks a strong turnaround in the first half of the quarter between July and September 2020.
Bajaj Auto reported its financial results for Q2 FY2021 and the company posted an 18.84 per cent year-on-year (Y-o-Y) drop in net profit at ₹ 1,138.29 crore for the quarter between July and September this year. The two-wheeler giant had reported a profit of ₹ 1,402.42 crore during the same period last year. Bajaj said that its total revenue for the previous quarter stood at ₹ 7,155.86 crore, which witnessed a decline of 7.16 per cent year-on-year. The operating profit was flat at ₹ 1,233 crore. Meanwhile, Bajaj Auto’s surplus cash and cash equivalent in Q2 stood at ₹ 16,240 crore, as against ₹ 14,232 crore in Q1.
Bajaj Auto sold 10,53,337 two-wheelers in the second quarter of the year, a drop of 10 per cent Y-o-Y, as opposed to 11,73,591 units sold during the same period last fiscal. The company’s domestic two-wheeler sales stood at 550,194 units, a decline of six per cent over 521,350 units sold during Q2 FY2020.
“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. Industry grew by 7 per cent in Q2 and our growth was in line with Industry and hence our market share was 18.2 per cent in H1/FY21 vs 18.1 per cent in H1/FY20,” Bajaj said in a statement.
The brand’s performance offerings remained its major contributors to volumes. Bajaj achieved the highest-ever quarterly sales for the Pulsar range with 348,561 units sold, while KTM and Husqvarna collectively sold 20,200 units in Q2 FY2021, the highest ever in the domestic market.
Bajaj sold 23,392 commercial vehicles last quarter, witnessing a massive drop of 78 per cent over the same period last year. Two-wheeler exports dropped by 11 per cent with 414,271 units shipped last quarter, while CV exports dropped by 20 per cent with only 65,480 units shipped overseas. The total two-wheeler sales declined by 2 per cent, while commercial vehicles sales including exports dropped by 53 per cent in Q2 FY2021.