Weak rupee helps Bajaj Auto post Q1 net at Rs 738 cr

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 percent to Rs 4,809 crore.

hidden July 19, 2013 12:38:29 IST
Weak rupee helps Bajaj Auto post Q1 net at Rs 738 cr

Bajaj Auto, India's second-largest motorcycle maker, 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 percent to Rs 4,809 crore.

Weak rupee helps Bajaj Auto post Q1 net at Rs 738 cr

Reuters

Analysts, on average, had expected a profit of Rs 747 crore on revenues of Rs 4,865 crore, according to Thomson Reuters.

Export volumes, which account for about a third of total sales, fell about 13 percent in the quarter, but Bajaj reaped the benefits of a weak rupee that lost nearly 9 percent against the U.S. dollar during the period.

"Taking into account the current trend of the rupee vis-a-vis the U.S. 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.

Reuters

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