New Delhi: India's second-largest motorcycle maker Bajaj Auto reported a flat first-quarter profit that matched expectations as its exports benefited from a weaker rupee, offsetting sluggish sales volumes.
The company posted a net profit of Rs 738 crore for the quarter that ended in June compared with Rs 718 crore a year ago. Net sales rose 2 per cent to Rs 4,809 crore.
Analysts, on an average, had expected a profit of Rs 747 crore on revenues of Rs 4865 crore, according to Thomson Reuters I/B/E/S.
Export volumes, which account for about a third of total sales, fell about 13 per cent in the quarter, but Bajaj reaped the benefits of a weak rupee that lost nearly 9 per cent against the US dollar during the period.
"Taking into account the current trend of the rupee vis-a-vis the US dollar and the current position of hedged contracts, a further benefit on account of depreciating rupee would accrue to the company in the coming quarters," Bajaj said in a statement.
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