Stock Market update: Bajaj Auto shares down by 2% despite strong performance in Q3

The company had surplus cash and cash equivalent of Rs 17,883 crore at the end of Q3 compared to Rs 17,526 crore three months before.

Shares of Bajaj Auto Ltd continue to trade in red and tanked down by 2.62 per cent at Rs 3,346.80 apiece today at 10:49 am IST, on Thursday session on the National Stock Exchange. Net profit sank to Rs 1,214 crore for the quarter ended December 31 from Rs 1,556 crore a year earlier.

Bajaj Auto Ltd witnessed its profit after tax (PAT) for the third quarter of 2021-22 plunge 22% on a standalone on year-on-year earlier because of the company’s decline in sales that affected economic conditions and rising input costs. The 3-wheeler maker stated that the standalone graph remained flat as the company saw a turnover of Rs 9,294 crore during the third quarter same as Rs 9,279 crore a year earlier.

The company had surplus cash and cash equivalent of Rs 17,883 crore at the end of Q3 compared to Rs 17,526 crore three months before. Amid Q3, it traded over 1.18 million units in India and across the globe. Bajaj Auto’s standalone earnings before income tax, depreciation and amortization (EBITDA), operating profit and profit before tax dropped 20%, 21% and 23%, respectively, during the third quarter on a YoY basis. Bajaj Auto expressed its market share enhanced to 19.2% in Q3 from 18.6% a year earlier and 18.1% in FY21.

“In the domestic commercial vehicle market, the industry recorded a growth of 5% over Q3 of FY21. In contrast, Bajaj Auto recorded a growth of 52% and reported a market share of 71%, continuing its leadership position across the three product categories in this segment,” the company said.

“Exports continue to record strong sales with average monthly volumes over 219,000 units. For the calendar year 2021, exports, by volume exceeded 2.5 million units – highest ever,” the statement further read.

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