Bajaj Auto beats quarterly profit forecasts on strong export demand

what happened

Indian automaker Bajaj Auto reported a quarterly profit on Tuesday that came in above forecasts. According to Reuters, second-quarter profit climbed 35.3% to 33.54 billion rupees ($352.55 million). Analysts had expected 31.68 billion rupees on average, according to LSEG data.

Demand for two-wheelers in India stayed firm during the July-September quarter, with last year's tax cuts continuing to support original equipment makers. Export volumes jumped 41%, far outpacing domestic sales. Together with favourable currency moves, this helped widen operating margins by 40 basis points. Revenue from operations rose 34.1% to 200.03 billion rupees.

why it matters

For investors, the results signal that exports remain a strong pillar for Indian carmakers, even as many manufacturers raise prices to offset rising costs. Reuters noted an exchange rate of 95.1350 rupees to the dollar at the time of publication, and currency movements also contributed to the result.

market impact

Bajaj Auto shares: results above forecasts support interest in the company's stock

• ▲Bajaj Auto shares pressure up — profit above expectations and rising exports support demand for the stock

tags

instruments