Bajaj Auto shares fall after low sales in June

Shares of Bajaj Auto fell on Monday on account of weak sales numbers in June.

Bajaj Auto shares were down 1.77 percent at Rs 46,0835 at 13.46 pm on the National Stock Exchange. The share has gained 20 percent since January 1.

Bajaj Auto’s 2-wheeler exports fell 33 percent year-on-year in June to 1,27,357 units, said the company in an exchange filing. The company’s commercial vehicle exports also fell 23 percent year-on-year in June to 13,461 units.

Bajaj Auto’s sales numbers in June missed Nomura total sales estimates by 9000 units. The company’s overall total sales in June also fell 2 percent year-on-year.

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“The industry is growing at low-single digits in the retail segment. Exports are on a gradual recovery path and they will be better in July than June,” said Rakesh Sharma, executive director at Bajaj Auto in an interview with CNBC-TV18.

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However, total exports in May were also down 26 percent year-on-year at 1,12,885 units, according to an exchange filing.

The automobile company’s total revenue grew 9 percent year-on-year to Rs 37,642 crore in FY23. In the same period, Bajaj Auto’s net profit reduced 1.6 percent year-on-year to Rs 6,060 crore. EBITDA margins for the company increased 134 basis points year-on-year in FY23.

Bajaj Auto on June 13, announced a dividend of Rs 140 per equity share of face value of Rs 10.

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