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India's Bajaj Automobile misses out on Q3 revenue view on weak domestic sales

India's Bajaj Auto reported a smallerthanexpected thirdquarter revenue on Tuesday, injured by lower domestic sales of its motorcycles and threewheelers, while greater sales of its margindiluting electric scooters also weighed.

The 'Pulsar' bike maker reported a 3.3% rise in revenue to 21.09 billion rupees (around $244 million) for the October-December quarter, missing analysts' expectations of 21.63 billion rupees, according to information assembled by LSEG.

This was the business's slowest earnings development in nearly 2 years.

Indian two-wheeler companies reported sales development of just 3% in the quarter, with demand - particularly for motorbikes - tapering after a 20% dive in the first quarter and a 13% climb in the 2nd quarter.

Bajaj's domestic two-wheeler sales trailed the remainder of the sector, dropping over 10% in the third quarter, with many segments, including its small-sized entry-level designs and the KTM premium models, reporting a decline.

Bajaj's exports leapt 22% in the quarter, increasing its total sales to 42.3% from 35.2% a year before.

Experts said that while a jump in exports was a favorable, that advantage was balanced out by greater sales of margin-diluting electric scooters that more than doubled in the quarter.

The firm's margins on profits before interest, taxes, devaluation, and amortization (EBITDA) stayed flat year-over-year at 20.2%.

Competing TVS Motor Company previously on Tuesday reported third-quarter earnings that missed out on price quotes as its two-wheeler sales grew at the slowest rate in more than a year, although improvement in a key revenue margin metric sent its shares up about 5%.

Shares of Bajaj fell 28.7% in the third quarter and had closed 0.2% higher on Tuesday.

(source: Reuters)