paragraph

(PTI) Bajaj Auto on Tuesday reported a marginal decline in consolidated net profit at ₹1,163 crore for the June quarter as chip shortage impacted sales.

The Pune-based firm had posted a net profit of ₹1,170 crore in the year-ago period.

Total revenue from operations rose to ₹8,005 crore in the latest June quarter from ₹7,386 crore in the same period a year ago, Bajaj Auto said in a regulatory filing.

Total volumes declined 7 per cent to 9,33,646 units from 10,06,014 units during the same period.

In the latest June quarter, sales were significantly impacted by inadequate availability of semiconductors even though the situation improved in the latter part as new supply sources were developed, the company said.

“We think about 20-25 per cent impairment took place in our sales plan because of the semiconductor shortage," Bajaj Auto Executive Director Rakesh Sharma said in post-earnings media interaction.

In the domestic motorcycle business, the impairment was at 40 per cent.

“At the end of the previous quarter (Q4FY22), we were expecting a lot of supply chain issues because of defaults on the supply of semiconductors. We were more clearly hit then rest of the industry because of the way our vendor portfolio was organised,” he said.

From March, he said there was a huge effort at the back-end to broad-base the vendor network and mitigate the supply chain issues. But June was better than May and July is going to be slightly better than June, he added.

"By August or September,&nbsp; all the efforts that we took over the last&nbsp; 4-5 months in terms of&nbsp;having a broader vendor&nbsp;network should be helping us to rebuild the channel stock&nbsp;and getting in shape for the season," he added.

He also said the currency fluctuation towards the end of June quarter impacted the company in both negative and positive manner.

"In that quarter, we could sense the trouble coming and that had to be managed. But the other side of the coin was we realised much better rates for the rupee for our exports which account for almost 60 per cent of our portfolio. That was a very good relief,” Sharma said.

“Putting all this together, while we had a 7 per cent decline in volume, largely due to the semiconductor issues, we got an 8 per cent improvement in revenue over the previous Q1 because of pricing action and better realisation of dollar," he said.

According to him, there was a 15 per cent increase in EBITDA and that the company could see softening in commodity prices.

Sharma also said that Bajaj along with its partner KTM are working on a high-end electric bike.&nbsp;

Bajaj Auto net profit falls to ₹1,163 crore in June quarter; chip shortage hits sales

Total revenue from operations rose to ₹8,005 crore in the latest June quarter from ₹7,386 crore in the same period a year ago, Bajaj Auto said in a regulatory filing.

India's GDP projections revised downward to 7.4% for fiscal year 2022: IMF

5G spectrum: Jio, Airtel, Adani pour ₹1.45 lakh crore bids

Sales growth in India strong during first half of this year, says Unilever

Brokerages assign a 'Buy' tag to Can Fin Homes with a 45% upside

Ace investor Dolly Khanna adds 6 new stocks to her portfolio in June quarter; See list 

Market Wrap: Across the board selloffs sink markets; mid, smallcaps underperform

Canara Bank shares falter after Q1 even as brokerages remain positive

Tech Mahindra shares trade lower after Q1; brokerages retain faith in the stock

This small-cap stock doubled investor wealth in one year 

Gold gains ₹97; silver jumps ₹527

In the international market, gold was trading higher at USD 1,777 per ounce while silver was flat at USD 20.07 per ounce.

Adani Ports Q1 net profit drops 17% to ₹1,091.56 cr

Adani Ports had clocked a consolidated net profit of ₹1,312.9 crore in the corresponding period a year ago, according to a regulatory filing.

Equity mutual funds' inflow drops 43% to ₹8,898 crore in July, AMFI data shows

The net inflows in July were lower compared to the net inflow of ₹15,495 crore seen in June, ₹18,529 crore seen in May and ₹15,890 crore in April, according to data released by Association of Mutual Funds in India (Amfi)on Monday.

Market Wrap: Sensex climbs 465 points; Nifty above 17,500

The 30-share BSE gauge climbed 465.14 points or 0.80 per cent to finish at 58,853.07. During the day, it jumped 546.97 points or 0.93 per cent to 58,934.90.

Manappuram Finance: Brokerages stay bullish despite a 35% drop in its net profit

In the June quarter, Manappuram Finance reported mixed results. It reported a 32% year-on-year drop in net profit at ₹282.1 crore for the first quarter of the fiscal year, compared to ₹436.5 crore in the previous fiscal.