India’s second-largest vehicle maker, Bajaj Auto, on Friday reported a 2.7% year-on-year rise in net profit to Rs. 738 crore during the April-June quarter as exports benefited from a weak rupee, offsetting sluggish sales volumes.
The news sent the company’s shares up 3.7% to Rs. 1,967 on the BSE.
Analysts had expected a net profit of Rs. 747 crore during the quarter.
While revenue rose marginally to Rs. 5,087 crore during the quarter, sales volume fell 9% on production loss due to workers’ strike.
The company said its ability to leverage the depreciation in the rupee vis-à-vis the US dollar to its advantage paid rich dividends.
“While exports were more or less flat at $327 million, in rupee terms, it recorded a 10% growth to Rs. 1876 crore in the first quarter of 2013-14,” said Kevin D’sa, president, finance, Bajaj Auto.
Motorcycle sales fell 12% to 8,60,151 units during the quarter, while three-wheeler sales rose 24% to 119,124 units, with exports growing 44% to 74,067 units.