Bajaj Auto's Q1FY21 standalone net profit down 53%

Source :IANS
Author :IANS
Last Updated: Wed, Jul 22nd, 2020, 15:45:05hrs
Bajaj  Auto

Mumbai: Two-and three-wheeler major Bajaj Auto's standalone net profit for the first quarter of 2020-21 fell 53.10 per cent due to Covid-19 pandemic.

The company's net profit during the quarter under review declined to Rs 528 crore from Rs 1,126 crore earned during the corresponding period of the previous fiscal.

According to the company, the Q1/FY21 has been an extremely challenging quarter due to the unprecedented Covid-19 pandemic.

"Lockdown and other containment or precautionary measures have resulted in disrupted supply lines and a sharp decline in overall demand," the company said in a statement on Wednesday.

"Impact of this pandemic was experienced in India and in countries across the globe that we export to. While we have restarted operations, sporadic localised lockdowns are disrupting the supply chain and impacting the ability of the business to return towards normalcy."

Further, the company reported that its turnover during the quarter under review declined to Rs 3,417 crore from Rs 8,197 crore reported for Q1, 2019-20.

"Resultant to the lockdown and other measures, revenue from operations recorded a decline of 60 per cent to Rs 3,079 crore," the statement said.

"However, strict cost control measures helped us declare an EBITDA of Rs 441 crore... Fixed cost spends were controlled across all plants and locations."

The company's total quarterly sales including exports fell to 4,43,103 units from 12,47,174 units off-take during the corresponding period of the previous fiscal.

"As of June 30, 2020, surplus cash and cash equivalents stood at Rs 14,232 crore as against Rs 14,322 crore as of March 31, 2020," the statement said.