Wednesday, January 19, 2011

Bajaj Auto Q3FY11 PAT jumps 40%, beats street forecast









Bajaj Auto, India’s second largest two-wheeler manufacturer after Hero Honda, has posted street- beating performances for the third quarter ending December 31, 2010. The company recorded a jump of 40.42% y-o-y in its net profit to Rs 667 crore in Q3FY11 from Rs 475 crore in the corresponding quarter of the previous fiscal year. Earlier in a poll by CNBC 18, analysts had predicted a growth of 33% in its Q3 FY’11 PAT. In another poll by Reuters, analysts had expected the company’s net profit to rise to only Rs. 618 crore.

The company also managed to beat analysts’ forecast when it posted a growth of 26.76% (vs. analysts’ estimate of 25%) in its revenues at Rs 4,177 crore compared to Rs 3,295 crore, during the same period. The company's EPS as a result grew significantly to Rs 23.10 in Q3FY11 from Rs 16.40 in the same quarter a year ago.

However, on the negative side, the company’s EBIDTA margin was lower at 20.3% vs. 22%, during the said period.

Bajaj Auto makes such top selling motorcycle brands as Pulsar, Discover and Avenger amongst others.

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