Bajaj Auto on Thursday posted a consolidated net profit of Rs 1,170 crore for the quarter ended June 30, as robust exports helped tide over the drop in domestic demand due to the second wave of the COVID-19.
The Pune-based company had reported a consolidated net profit of Rs 395.51 crore in April-June 2020-21, which saw massive disruptions in the market due to COVID-led lockdowns and restrictions.
The total revenue from operations during the first quarter rose to Rs 7,386 crore as compared to Rs 3,079 crore in the same period previous fiscal.
"First quarter of FY22 has been a challenging quarter; the recovery over the past three quarters got undone with the second wave of COVID-19, which again led to restrictions and full or partial lockdowns. This resulted in weaker domestic demand, which was partially offset with strong exports across all major geographies," Bajaj Auto said in a statement.
While the pandemic has impacted the first quarter of FY21 and FY22, the severity of impact was very different and hence, the performance of the two quarters are not strictly comparable, it added.
The company sold a total of 10,06,014 units in the first quarter against 4,43,103 units in the same period of 2020-21.
In the domestic market, the company sold 3,57,137 units in the June quarter compared to 1,91,263 units in the same period of FY21.
Overseas shipments, on the other hand, stood at 6,48,877 units in the first quarter against 2,51,840 units in the April-June quarter of 2020-21.
Bajaj noted that as of June 30, 2021, its surplus cash and cash equivalents stood at 19,097 crore over Rs 17,689 crore of March 31, 2021.
The company said its board has approved the incorporation of a wholly-owned subsidiary.
"The unit will leverage the growth opportunities in the evolving mobility space and will help the company venture into the manufacturing of electric and hybrid vehicles in the two-wheeler, three-wheeler and light four-wheeler categories," it added.
Shares of the company ended trading 1.32 per cent lower at Rs 3,852.60 apiece on the BSE.