India's Bajaj Auto beats Q3 profit view
Technology
India's Bajaj Auto beats Q3 profit view
BENGALURU (Reuters) - India's Bajaj Auto (BAJA.NS), reported third-quarter profit above estimates on Wednesday, helped by strong domestic demand for its motorcycles and three-wheelers.
Bajaj Auto is the first Indian two-wheeler maker to report results in a quarter that saw a strong uptick in domestic motorcycle sales driven by successive festive and wedding seasons when Indians prefer making big-ticket purchases.
The company reported a standalone net profit of 20.42 billion rupees ($245 million) for the quarter ended Dec. 31, beating analysts' average estimate of 19.47 billion rupees, per LSEG data.
The 'Pulsar' motorcycle manufacturer's revenue increased 30%, while expenses rose 28% in the quarter.
Bajaj Auto also benefited from strong demand for its premium motorcycles, led by the two Triumph models. Sales in its premium category, which also includes Dominar, KTM and Husqvarna models, more than tripled in the quarter.
Triumph saw an "encouraging double-digit segment market share across select cities", while exports commenced during the quarter, the company said in a statement.
Bajaj Auto's commercial vehicle sales, which includes three-wheelers, rose around 22%.
Earnings before interest, taxes, depreciation and amortization margin improved to 20.1% during the quarter from 19.1% a year before and 19.8% in the previous quarter.
Its shares closed 1.65% higher ahead of the results.
