New Delhi : Bajaj Auto's shares plummeted more than 9 per cent on Thursday morning following a 31 per cent drop in consolidated profit after tax for the second quarter ended September 30, 2024. The stock on the BSE plummeted by 9.27 per cent to Rs 1,0540. At the NSE, it dropped by 9.30 percent to Rs 10,536.
Bajaj Auto's consolidated profit after tax for the second quarter of the fiscal year ending September 30, 2024, fell by 31 pc to Rs 1,385 crore compared to the previous year. This decrease was influenced by increased expenses and a one-time impact from a rise in its provision for deferred tax. The company's profit after tax (PAT) hit Rs 2,020 crore in the July-September period of the previous fiscal year. In a regulatory filing, Bajaj Auto stated that despite this, the total revenue increased to Rs 13,247 crore in the second quarter from Rs 10,838 crore in the same period last year.
The company reported a rise in expenses in the second quarter to Rs 10,767.22 crore from Rs 8,806.47 crore in the same period last year. Bajaj Auto Executive Director Rakesh Sharma informed reporters during an earnings call that they had to allocate Rs 211 crore as a one-time additional provision due to deferred tax, leading to a decrease in PAT. He stated that the removal of the indexation benefit by the government has doubled the effective tax rate on debt mutual funds from 6.8-7 percent to 14 percent, describing it as a one-time impact unrelated to operations.
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