Two-wheeler major Bajaj Auto reported a meagre 3% increase in net profit for the third quarter at R819 crore year-on-year against Rs.
795.2 crore during the corresponding period last year.
Bajaj Auto net up 3% as bike sales slow down
The company's domestic motorcycle sales slowed and exports declined in during the quarter review. The revenue grew 9% year-on-year to Rs. 5,616 crore.
Bajaj sold 687,351 motorcycles in India, up 7% from the year-ago period and exported 298,912 units, 2% down in October-December period.
While, its three-wheeler sales in India grew 23% to 64,168 units and exports 1% at 76,558 units.
The decline in exports led to decrease in profit margin from 21% to 20.1%, sending its shares 2% down at R2,072.95 on the BSE on Wednesday.
Kevin D'sa, president, finance, Bajaj Auto said the company partially addressed the slowdown in domestic motorcycle market market with new launches.
In international markets except Africa, demand remained subdued.
In three-wheeler market the company reported 23% growth, outperforming the industry, which grew 13%.
"Despite slowdown we saw our market share in motorcycles growing from 25 to 26.2% in the third quarter. New launches are driving market share," said S Ravi Kumar, vice-president, business development, Bajaj.