Bajaj Auto, India's second largest motorbike maker, reported a less-than-expected 6% year-on-year growth in net profit at Rs 726 crore for the second quarter on Thursday, hit substantially by a mark-to-market loss of Rs 95 crore arising from accounting of future contracts linked to foreign exchange earnings from exports.
The figures, coming two days after market-leader Hero MotoCorp reported a 19.4% growth (at a comparatively lower Rs 603 crore) caused a marginal 1.3% dip in Bajaj's share price on the BSE on Thursday.
However, the company maintained that its Rs 5,342 crore, highest-ever turnover, a record million plus motorcycles sales and highest-ever export revenue and volume represent a bright picture for the coming months.
About the R95-crore mark-to-market loss, Kevin D'sa, president - finance, Bajaj Auto, said it was purely notional and would get reversed when contracts mature.
Total exports in July-September grew 38% in volume, clocking 307,322 units. Export earned Rs 1,733 crore revenue, 50% up over the year-ago quarter.
Bajaj reported an EBITDA margin of 20.1%, the best in the industry.
The company's share in the intensely competitive motorcycle market now stands at 27%. "The market share will significantly grow next fiscal as new product offerings will hit the market. A whole new Pulsar range will come in by February," said D'sa.