Benefits of its diversified sales mix came through clearly in Bajaj Auto Ltd’s March quarter performance. Even with the covid-19 led slowdown in sales, the two- and three-wheeler maker’s margins zipped past estimates.
The Street cheered the performance with the stock trading 6% higher in early trade on Thursday. At 18.4%, Bajaj’s earnings before interest, tax, depreciation and amortisation (Ebitda) margin rose 185 basis points (bps) over the year-ago period.
It beat Bloomberg’s consensus estimates by 250 bps. One basis point is one-hundredth of a percentage point. Analysts said multiple products and mix helped Bajaj cruise through a tough quarter.