Bajaj Auto announced its earnings for the fourth quarter that ended in March 2018 and reported a 34.7% increase in its net profit compared to the same period last year. The company’s profit was in line with estimates put forth by industry analysts. The significant increase in profit can be attributed to the increase in domestic demand across the country and sustained growth in exports.
For the fourth quarter, Bajaj Auto announced a net profit of Rs.1,079.87 crore which is 34.7% higher than Rs.801.82 crore reported in the March quarter of 2017. Analysts estimated an average of Rs.1,042 crore in net profit for this period. The company’s net sales for the period increased about 30% to Rs.6,651 crore.
The company generated this revenue by selling about 10.45 lakh unit vehicles during the January to March period. This is 33% higher than the 7.87 lakh unit vehicles sold during the same period of last year. The company reported a 20% growth in domestic two-wheeler sales to 4.98 lakh units and a 25% increase in exports to 3.59 lakh units.
Following the impressive fourth-quarter results, the company’s board announced a dividend of Rs.60 per share. At the moment, the company has around 17% to 18% market share in the two-wheeler segment in India. S Ravikumar, Head of Business Development at Bajaj Auto, stated that the company is optimistic about gaining another 1.5% market share in the upcoming quarter in addition to the 1.5% market share it gained in Q4.
Bajaj Auto is currently the fourth-largest two-wheeler manufacturer in India. The top 3 positions in the segment are occupied by Hero Motors, Honda, and TVS Motors respectively. The company is currently looking forward to reviving its market share by launching new variations of its popular models.