Despite sluggish sales, India’s second-largest indigenous motorcycle manufacturer Bajaj Auto has reported modest revenue and profit growth in first-quarter financial results to 30 June.
Revenue for the three months rose by two per cent to the equivalent of about £530m. Net profit was up by 2.8 per cent to £81m. However, both of these figures were below the expectations of industry analysts.
Export volumes, which account for about a third of total unit sales and include KTM-branded products destined for the UK and elsewhere, fell by 13 per cent. But Bajaj admitted reaping the benefits of favourable foreign exchange translation, given the rupee fell by almost nine per cent against the US dollar during this period.
A statement said: “Taking into account the current trend of the rupee vis-a-vis the US dollar and the current position of hedged contracts, a further benefit on account of the depreciating rupee would accrue to the company in coming quarters.”