A logo of Bajaj is seen on an auto at a parking lot in Kolkata, India.
Credit: Reuters Photo
Bengaluru: Indian automaker Bajaj Auto reported a nearly 20 per cent rise in first-quarter profit as it sold more expensive motorcycles and exports improved, sending its shares higher.
The Pulsar motorcycle maker's standalone profit after tax rose to 19.88 billion rupees ($238 million) for the three months to June 30.
Analysts had expected a profit of 19.84 billion rupees, as per LSEG data.
Shares of Bajaj Auto, the first Indian two-wheeler maker to report first-quarter results, rose as much as 2 per cent after results before trimming some gains to trade 1 per cent higher. The Nifty Auto index rose 0.5 per cent.
Strong demand in the more expensive 125cc and above motorcycle segment, especially for its popular Pulsar in the urban market, helped boost the company's total two-wheeler sales volume by 7 per cent to about 951,000 units, as per its monthly sales data.
The company's total revenue rose 15.7 per cent to 119.28 billion rupees, beating analysts' average estimate of 118.80 billion rupees.
Bajaj Auto's portfolio of motorcycles in the category includes models in its Pulsar series and premium motorcycles that the company makes under partnerships with Austria's KTM and British Triumph.
Exports, which contribute heavily to Bajaj Auto's revenue, recovered from last fiscal's dull showing. Exports had bottomed out in fiscal 2024 amid currency-related issues in some African countries among others.
Bajaj Auto's total export volume climbed nearly 7 per cent, accounting for around 37 per cent of its total overall sales volume.
Three-wheeler sales grew roughly 10 per cent but its contribution to total sales of around 13 per cent remained at last year's level. Three-wheelers are a margin-boosting segment as they cost less to make than other vehicles.