As anticipated by analysts, second-largest indigenous Indian motorcycle manufacturer Bajaj Auto has become the big motorcycle industry winner from India’s declining currency, thanks to its status as that country’s largest bike exporter.
Second-quarter financial results to 30 September show that Bajaj increased sales revenue in the period by five per cent to £511m. Resultant net profit grew by 13 per cent to £84m. This good fortune was attributed to a substantial rise in export earnings as the rupee’s value fell.
Bajaj exports about a third of its entire production. This includes the 125, 200 and 390cc Duke range destined for the UK, Europe and elsewhere, manufactured under contract for its Austrian technical and equity partner KTM.
In response to these results, Bajaj’s share price on the Bombay Stock Exchange was riding 21 per cent higher than a year ago, compared with 11 per cent for benchmark equivalents in the BSE Sensex 30 stock index.