Bajaj Auto reported flat revenue growth on lower sales volume; but operating EBITDA margin was above market expectation.

Bajaj Auto Ltd (BAL) India's second largest two wheeler manufacturer announced its Q3FY16 results on Thursday. This quarter result was expected to be weak due to lower sales volume growth and export. However in Q3FY16 sales volume declined 3% Y-o-Y to 9.51 lakh units. Export volumes fell 16% Y-o-Y to 4.1 lakh units in Q3 due to sharp slowdown in demand in Africa and Latin America. The company said as oil prices are coming down, dispatches to some markets like Egypt and Nigeria have been impacted as it is facing balance of payment issues due to non-availability of dollar for imports. However, domestic volume growth increased by 9.5% YoY to 5.41 lakh units in third quarter, led by strong growth in domestic three-wheelers.

BAL standalone net revenue from operations was marginally down by 2% Y-o-Y to Rs. 5,564.90 crores. The operating EBITDA increased by 3% Y-o-Y to Rs 1,234 crores compared to Rs 1,202 crores in Q3FY15. The operating EBITDA margin of company stands at 22.0% this quarter compared to 21.1% in Q3FY15. The net profit for the December quarter rose marginally by 5% Y-o-Y to Rs. 901.49 crore.

The nine month ending standalone net revenue from operations is marginally up by 2.4% to Rs.17,276.17 crores compared to Rs.16,872.67 crores for the same period last year. The net profit for nine month period stands at Rs.2,849.35 crores compared to Rs.2,192.12 crores, an increase of 30% from the same period last year. Volumewise the company sold a total of 30,21,123 vehicles in April-December 2016 period.

The share price of BAL declined by 1.48% to Rs. 2,313 on bourses during the closing session.

Bajaj Auto Limited is one of leading manufacturer of two-wheelers and three-wheelers in India. The Company's two wheelers include Pulsar, Avenger, Discover, Platina and Ninja. The Company has manufacturing plants at Waluj, Chakan and Pantnagar.