Home / 2/3 wheeler / Bajaj Auto Q4 profit hit on weak sales at Rs 621 Cr

Bajaj Auto Q4 profit hit on weak sales at Rs 621 Cr

Bajaj Auto
Photo Source : Bajaj Auto

Bajaj Auto Q4 profit hit on weak sales at Rs 621 Cr : Bajaj Auto fourth quarter results were mainly impacted due to weak sales in India and the international markets.

 

As a result of weak sales in both domestic and overseas markets, Indian two wheeler major Bajaj Auto reported a decline in net profit recorded in the fourth quarter ended March 31, 2015.

As per its filing to Bombay Stock Exchange, the company’s net profit for the period tumbled by 18.5 percent to Rs 621.6 crore compared to Rs 762.6 crore recorded in the same period in the previous financial year 2013-14. Its total income declined to Rs Rs 4893.6 crore in the fourth quarter of the financial year 2014-15 from Rs 5117.1 crore it reported in the corresponding period of the previous year.

For the full financial year 2014-15, the company’s net profit after tax fell to Rs 2813.7 crore from Rs 3243.3 crore reported in previous fiscal. The net profit declined when the company’s total income for the period increased substantially.

However the outcome of the Bajaj Auto results were ahead of estimation of different brokerage houses in India.

According to Bharat Gianani, Senior Research Analyst – Automobiles of the Mumbai-based brokerage house Angel Broking, the fourth quarter results of Bajaj Auto were ahead of Angel Broking’s estimation due to better operating performance. He said the revenues of the two wheeler maker declined by 4 percent year-on-year to Rs 4739 crore but were better than their estimate of Rs 4519 crore. He added that the higher realization lead to beat on the topline.

Arun Agarwal, an Analyst attached to another Mumbai-based brokerage firm Kotak Securities said that fall in sales in domestic and overseas market impacted the Bajaj Auto Q4 financial performance. The company’s revenue during the period fell year-on-year amid 16 percent fall in total sales volumes. He said lower revenue and margin led to adjusted net profit tumbling during the quarter. Kotak said it sees the current financial year 2015-16 as a recovery year and expect good growth the following fiscal.

About Automotive India News

Avatar

Check Also

Yamaha India drives in next gen Scooter Cygnus Ray-ZR

India Yamaha Motor has launched the new Cygnus Ray-ZR scooter, which will be available for …