Sales volumes in the previous month grew merely 1 percent on a year-on-year basis
The shares of Bajaj Auto fell sharply in the morning trade on June 1 after the company reported lower-than-expected sales data for May.
Bajaj Auto reported total sales of 2.75 lakh units for May, which was below Nomura India Securities’ estimate of 3.12 lakh.
Sales volumes in the previous month grew merely 1 percent on a year-on-year basis and were down more than 34 percent from their pre-pandemic levels in May 2019.
The muted sales performance was led by a weak month for exports for the company. Two-wheeler exports slumped 15 percent on-year to 1.53 lakh units, while three-wheeler exports fell 67 percent to 10,163 on-year in May.
Overall exports during May plummeted 22 percent on a year-on-year basis for Bajaj Auto, while domestic sales rose 85 percent.
May 2021 performance was affected by lockdowns as a devastating second Covid-19 wave swept the country
Bajaj Auto blamed the muted performance in May to shortages in procuring semi-conductors since March. “We faced 40 percent shortfall in May due to a semiconductor shortage,” the company told CNBC-TV18 in an interaction.
The company said that the supply-chain issue would continue to affect performance in the June quarter and a any scale-up in production would happen from July.
At 10.01 am, shares of Bajaj Auto were down 3 percent at Rs 3,748.95 on the National Stock Exchange.