Bajaj Auto Reports 22% Increase In Q2 Net Profit At Rs 1,402 Crore
The profitability in Q2 FY20 was aided by a tax expense reversal of Rs 182 crore due to the recent lowering of corporate tax rate.
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Two-and three-wheeler manufacturer Bajaj Auto on Wednesday reported 22 per cent year-on-year jump in its profit after tax to Rs 1,402 crore during the July to September (Q2) quarter of current financial year.
In Q2 FY19, it had a profit of Rs 1,152 crore. The profitability in Q2 FY20 was aided by a tax expense reversal of Rs 182 crore due to the recent lowering of corporate tax rate. However, revenue from operations during Q2FY20 dropped by 4 per cent to Rs 7,707 crore from Rs 8,036 crore in the year-ago period due to ongoing slowdown in the automobile sector.
The earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 9 per cent to Rs 1,305 crore from Rs 1,441 crore while operating profit too dropped by 9 per cent to Rs 1,242 crore compared to Rs 1,369 crore in Q2 FY19.
"Q2 was a difficult quarter for the domestic motorcycle industry," the company said in a statement.
In terms of volume, domestic motorcycle sales dropped by 25 per cent to 5.21 lakh units in Q2 FY20 compared to 6.92 units in Q2 FY19. Domestic commercial vehicle sales slipped by 4 per cent to 1.07 lakh versus 1.11 lakh units in the year-ago period.
In export markets, motorcycle sales dropped by 7 per cent to 4.62 lakh units and commercial vehicle sales by 19 per cent to 81,621 units.
With domestic and exports markets combined, motorcycle sales dropped by 13 per cent and commercial vehicles by 11 per cent, averaging a decline of 12 per cent to 11.73 lakh units in Q2 FY20 compared to 13.39 lakh units in Q2 FY19.
As on June 30, surplus cash and cash equivalents totalled Rs 17,126 crore. After the payment of dividend and tax of Rs 2,072 crore, surplus cash and cash equivalents stood at Rs 15,986 crore as on September 30.