Net profits of Bajaj Auto for the Jun-20 quarter fell 53% to Rs.528 crore, largely due to the impact of the lockdown. Net sales for the Jun-20 dropped very sharply by 61% to Rs.2949 crore as compared to Rs.7565 crore last year. The COVID pandemic and the consequent lockdown resulted in a sharp impact on supply line and also on demand.

The pressures were also visible at the operational level with the EBITDA falling from Rs.1250 crore to Rs.441 crore. As a result, the EBITDA margin of Bajaj Auto fell from 16.1% last year to 14.3% this year. The good news for Bajaj Auto was that it managed to improve its market share of motorcycles during the quarter from 18.5% to 20.7%.

After nearly zero sales in may, the sales are picking up to normal levels from June onwards.