Bajaj Auto Navigates Tax Hits and Expands Electric Portfolio Amid Q2 Profit Dip

Bajaj Auto reported a 31% decline in Q2 profit, impacted by increased expenses and a deferred tax provision. Despite a rise in operations revenue and unit sales, the company faced a higher tax rate on debt mutual funds. Bajaj plans further investment in its electric and Brazil operations.

Bajaj Auto reported a 31% decline in profit after tax for Q2, with figures dropping to Rs 1,385 crore from Rs 2,020 crore in the same period last year. This downturn is attributed to increased expenses and a one-time deferred tax hit.

The company's revenue from operations rose significantly to Rs 13,247 crore, although expenses mounted to Rs 10,767.22 crore. The increase in tax provisions was due to a withdrawal of the government's indexation benefit, effectively doubling the tax rate on debt mutual funds.

Nevertheless, Bajaj Auto plans to bolster its electric vehicle lineup with new Chetak models and expand Brazilian operations, signaling optimism for future growth despite current financial hurdles.

(With inputs from agencies.)