Bajaj Auto Q1 Profit Flat Amidst Industry Slowdown

One of India's leading motorcycle manufacturers, Bajaj Auto Limited, has reported a flat growth in profit of 1 per cent of its consolidated profit after tax (PAT) to Rs. 1,126 crore in the first quarter (April - June, 2019) of the current financial year. The company's profit stood at Rs. 1,115 crore in the same quarter a year ago. Bajaj Auto's profits from the last quarter (Q4 of FY 2019) however, slipped from Rs. 1,306 crore to Rs. 1,126 crore, a fall of nearly 14 per cent. Bajaj Auto said in a statement that the company recorded a growth of 3 per cent over the same period a year ago, as against an industry de-growth of 9 per cent.

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The Bajaj Pulsar range is one of the most popular motorcycles in the Sports segment

Revenue from operations rose 4 per cent to Rs. 7,756 crore in the April to June, 2019 period, as compared to Rs. 7,465 crore in the same period a year ago. Overall volumes though remained flat, growing just 2 per cent from 12,26,641 two-wheeler and commercial vehicle units in the first quarter of 2018-19 to 12,47,174 units in the same quarter of the current financial year. Overall motorcycle sales of Bajaj grew by 5 per cent in both domestic and international markets with volumes increasing to 10,82,627 units in Q1 of 2019-20 from 10,29,964 units in the same quarter a year ago. Motorcycle sales in the domestic market also grew by 3 per cent, from 5,94,234 units in April - June, 2018 to 6,10,936 units in the April - June period in 2019.

(The prices for the Bajaj Platina H Gear start at Rs. 53,376 ex-showroom, Delhi)

Bajaj Auto's numbers are better-than-expected amidst a slowdown in the auto industry. According to a statement by the company, overall share of Bajaj Auto in the domestic motorcycle market stood at 18.3 per cent as against 16.3 per cent in Q1 of FY2018-19. Bajaj says, in the sports motorcycle segment, led by the Bajaj Pulsar models, the company continues to maintain its dominance with market share of 46.9 per cent in Q1 of FY 2019-20. The Pulsar, along with Avenger, sold over 2,61,000 units, a growth of 17 per cent over the first quarter a year ago. The recently launched Avenger 160 has sold over 12,000 units in the April-June, 2019 period.

In the entry-level commuter motorcycle segment, Bajaj sold over 3,00,000 units in Q1 of 2019-20, with a market share of 30.6 per cent. The Bajaj CT range sold over 1,23,000 units, while the Platina sold over 1,66,000 units, a growth of 59 per cent. In Q1 of FY 2020, Bajaj Auto has also launched a new Platina 110 H Gear in the domestic motorcycle market with a new five-speed gearbox. The market response to this new model, Bajaj says, has been very good.