Bajaj Auto posts quarterly profit rise on demand boost

India’s top auto exporter Bajaj Auto reported an 18.7% rise in third-quarter profit on Friday, boosted by stronger exports and higher domestic sales of its two-wheelers.

The Pulsar motorcycle maker’s profit rose to 25.03 billion Indian rupees ($272.3 million) for the quarter ended December 31, compared to 21.09 billion Indian rupees a year ago.

Analysts, on average, expected a profit of 25.07 billion Indian rupees, per data compiled by LSEG.

Robust export demand helped lift the company’s overall volumes as domestic sales faced intense competition. A richer product mix supported performance, even as cost pressures lingered.

Two-wheeler exports rose 13.8% on stronger African market demand and favourable currency movements, analysts said. Overseas shipments, making up nearly half of total two-wheeler sales, grew 7.4%.

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Domestic two-wheeler sales were up 2.3%, supported by tax reforms and festive-season demand as growth returned after two straight quarters of decline. However, it lagged a 17% rise in industry-wide domestic two-wheeler sales.

Revenue from operations increased nearly 19% to 152.2 billion Indian rupees in the reported quarter, helped by premium vehicle sales, and above analysts’ estimate of 151.05 billion Indian rupees.

Its shares closed 0.9% higher ahead of the results on Friday and were up 7.7% in the third quarter.