InvestorQ : Why did Bajaj Auto disappoint in the Sep-20 quarter?
sarah Leo made post

Why did Bajaj Auto disappoint in the Sep-20 quarter?

Rashi Mehra answered.
7 months ago

Bajaj actually had reasons for disappointing in the Sep-20 quarter what it has called an exceptional quarter. Bajaj Auto reported 7.16% lower sales for the Sep-20 quarter at Rs.7,156 crore and 1.34% lower operating profits at Rs.1,201 crore. Net profits were sharply down by 21.6% at Rs.1,194 crore.

While the operating margins were higher at 16.79% due to lower sales, the net margins suffered a 300 bps fall at 16.69% due to lower other income. With two-wheeler demand taking a hit in the midst of COVID-19, Bajaj felt the heat from domestic and global markets.

For the month of September the Pulsar model recorded record volumes. However, the treasury income got impacted due to lower interest rates on debt investments. In terms of global business, Bajaj saw revival in Africa and Latin America but ASEAN lagged.