rediff.com

Bajaj Auto Shares Plunge 13% After Q2 Earnings

Share on:

By Rediff Money Desk, New Delhi   Oct 17, 2024 16:40

Bajaj Auto shares tumbled over 13% after reporting a 31% decline in Q2 profit, impacting market valuation by Rs 41,665.54 crore. The decline was attributed to higher expenses and a one-time hit due to increased provision for deferred tax.
Bajaj Auto Shares Plunge 13% After Q2 Earnings
New Delhi, Oct 17 (PTI) Shares of Bajaj Auto on Thursday cracked over 13 per cent after the firm reported a 31 per cent year-on-year decline in consolidated profit after tax for the second quarter ended September 30, 2024.

The stock tanked 12.87 per cent to settle at Rs 10,122.30 on the BSE. During the day, it plunged 13.31 per cent to Rs 10,071.

At the NSE, it slumped 13.11 per cent to Rs 10,093.50.

The company's market valuation eroded by Rs 41,665.54 crore to Rs 2,82,672.93 crore.

In traded volume terms, 1.40 lakh shares of the firm were traded at the BSE and 36.69 lakh shares at the NSE during the day.

Bajaj Auto on Wednesday reported a 31 per cent year-on-year decline in consolidated profit after tax to Rs 1,385 crore for the second quarter ended September 30, 2024, impacted by higher expenses and a one-time hit due to an increase in its provision for deferred tax.

The company had reported a consolidated profit after tax (PAT) of Rs 2,020 crore in the July-September period of last fiscal.

Total revenue from operations, however, rose to Rs 13,247 crore in the second quarter compared with Rs 10,838 crore in the year-ago period, Bajaj Auto said in a regulatory filing.

Total expenses in the second quarter were higher at Rs 10,767.22 crore as compared to Rs 8,806.47 crore in the year-ago period, the company said.

"We had to make a one-time additional provision of Rs 211 crore on account of deferred tax," Bajaj Auto Executive Director Rakesh Sharma told reporters in an earnings call on the reason behind the dip in PAT.

The withdrawal of the indexation benefit which the government had given on long term capital gains, and this withdrawal has effectively increased the effective tax rate from about 6.8-7 per cent to 14 per cent on debt mutual funds, he said, adding " that is a one time hit, nothing to do with operations.
Source: PTI
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.

TODAY'S MOST TRADED COMPANIES

  • Company Name
  • Price
  • Volume

More »

Moneywiz Live!