Bajaj Auto today reported a better-than-expected 15% jump in net profit for the quarter ended December 31, driven by an improved operating margin. Net profit rose to ₹1,262 crore as compared to ₹1,102 crore in the same quarter of the previous year. Revenue from operations rose 3% to ₹7,640 crore.
Operating margin improved sequentially by 150 bps from 16.9% in Q2 of FY20 to 18.4% in Q3 of FY20. This improvement was largely driven by reduction in cost of material, increase in prices and forex gains.
As on 31st December 2019, surplus cash and cash equivalents stood at ₹17,407 crore as against ₹15,986 as on 30 September 2019.
During the quarter, Bajaj Auto sold 1,202,486 units with export volumes at 562,772 units, the highest ever.
Source: Livemint
