Bajaj Auto dipped 8% to Rs 2,876 on the BSE in noon deal trade after the company reported a lower than expected 21% year on year (YoY) growth in standalone net profit Rs 11.15 billion in June quarter (Q1FY19). Analysts on an average had expected profit of around Rs 13 billion for the quarter. The stock dipped 9% from its early morning high of Rs 3,152 on the BSE.
The company's net profit came in at Rs 1,115.23 crore. The average of estimates of the 18 analysts polled by Reuters had pegged the bottom line at Rs 1,261 crore.
The Pune-based bike maker's total income came in at Rs 7,823.70 crore , nearly 24 percent higher than in the same quarter last year. The analysts polled by Reuters had expected the company to report revenue of Rs 6,359 crore.
Bajaj Auto, which makes and sells motorcycles under the Pulsar, Avenger, CT100 brands, as well as three-wheelers under the RE brand, clocked a volume growth of 38 percent during the reporting quarter.
Motorcycle sales grew 33 percent to 1.02 million units, while three-wheeler sales came in at 1.96 lakh units, 74 higher than last year.
Bajaj Auto cut the price of the CT100 by almost Rs 2,000 in March, which made it the cheapest geared motorcycle in the country at Rs 30,714 (ex-showroom, Delhi). This was done to make the model more competitive, especially for the rural market.
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