Bajaj Auto Q3 Net Profit Up 10.5 pct, Beats Estimates - The New Indian Express

Bajaj Auto Q3 Net Profit Up 10.5 pct, Beats Estimates

Published: 16th January 2014 01:32 PM

Last Updated: 16th January 2014 01:32 PM

Motorcycle maker Bajaj Auto reported a better-than-expected 10.5 percent increase in quarterly net profit, helped by a foreign exchange gains and as higher revenues from exports helped offset weak demand for its vehicles.

The company, for whom exports contribute more than a third of sales, said net profit for the October-December quarter was 9.05 billion rupees ($147 million), compared with 8.19 billion rupees a year ago.

The company also benefited from a foreign exchange contract related gain of nearly 1 billion rupees during the quarter.

The average estimate of 15 analysts was for a profit of 8.82 billion rupees, according to Thomson Reuters I/B/E/S.

Export revenue rose 23 percent in the quarter from a year earlier, the company said on Thursday, although total sales in volume terms fell nearly 12 percent.

Its operating margin -- said to be the best in the industry -- was 21.1 percent in the quarter, wider than 19.8 percent reported a year ago.

Shares of the company, which is India's biggest exporter of two-wheeler vehicles and three-wheelers such as tuk tuks, were trading up 0.8 percent at 1,908 rupees in afternoon trade in a Mumbai market that was down 0.3 percent.

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