Bajaj Auto, India's second-largest motorcycle maker, reported a flat quarterly profit, lagging expectations, hurt by sluggish sales volumes in the domestic market.
Bajaj said on Thursday standalone net profit was 7.4 billion rupees ($123 million) for its fiscal first quarter to end-June, compared with 7.38 billion rupees a year ago. Net sales rose 6.7% from a year earlier to 51.33 billion rupees.
Analysts on average had expected a profit of 8.16 billion rupees on revenue of 51.99 billion rupees, according to Thomson Reuters I/B/E/S.
Sales volume of Bajaj's motorcycles slumped 16.5% between April and June, hit by sluggish sales in the domestic market. This has put Bajaj behind its rival TVS Motor Co, which moved up a notch to become India's third-largest two-wheeler company by unit sales.
Bajaj, valued by the market at $10.4 billion at Wednesday's close, is the worst performer so far this year among Indian automobile companies.
The stock has gained 12.2% so far this year at Wednesday's close, underperforming the automobile sector index, which was up 32.3% over the same period.