A combination of better realisation, product mix and cost efficiency due to lower material costs helped Bajaj Auto beat estimates and report a higher profit during the third quarter of FY16, Bajaj Auto president, business development, S Ravikumar told FE.
Bajaj Auto reported a 4.67% y-o-y growth in profit to R901.49 crore while revenue was down 1.63% to R5,564.90 crore with sales decreasing by 3.35% to 9.51 lakh units during Q3 of FY16. Operating EBITDA was at 22%. Other income nearly doubled to Rs199.68 crore during Q3FY16.
The company reported higher profits on the back of the success of the Avenger brand with volumes going up which improved the average realization per unit by R1,000 to R58,500, Ravikumar said. On the cost side with material prices going down, there was an improvement in cost efficiencies that contributed to profits, he added. Also the company had dollar realization at an exchange rate of R66 per dollar during the quarter and with Rupee depreciating further it will be better for export realization, he said.
Export revenues during the quarter was down 14% to R2,281 crore from R2,680 crore same time previous year due to sliding oil prices causing balance of payment issues.