Bajaj Auto Shares Plummet Following Profit Decline

Bajaj Auto shares dropped over 9% after announcing a 31% reduction in Q2 2024 profit due to increased expenses and a one-time deferred tax provision. Despite revenue growth, profits fell from Rs 2,020 crore to Rs 1,385 crore, impacted by changes in capital gains tax regulation.

On Thursday morning, Bajaj Auto shares tumbled by more than 9 percent following the company's disclosure of a substantial 31 percent year-on-year decrease in consolidated profit after tax for the second quarter ending September 30, 2024.

At the Bombay Stock Exchange (BSE), the firm's stock plunged 9.27 percent to settle at Rs 10,540, while at the National Stock Exchange (NSE), the decline was slightly sharper at 9.30 percent, reaching Rs 10,536.

Bajaj Auto's executive team attributed the decline in profits to rising expenses and a remarkable one-time deferred tax provision of Rs 211 crore. Total revenue from operations saw an uplift to Rs 13,247 crore, but overall expenses soared to Rs 10,767.22 crore, significantly impacting the bottom line.

(With inputs from agencies.)