Bajaj Auto scores another point against Hero Honda

The first-quarter earnings performance by the top two Indian two-wheeler makers is yet another reflection of Bajaj Auto Ltd.'s growing influence in a market that its larger rival, Hero Honda Motors Ltd., has been dominating for red the last few years.

Over many past quarters, Bajaj Auto has posted a record growth in sales and profit that, to some extent, have helped it reduce the yawning gap between itself and Hero Honda , the nation's largest two-wheeler maker by sales.

For the April-June quarter, Bajaj beat market estimates with a two-fold year-on-year jump in net profit to 5.90 billion rupees ($127 million) -- its highest-ever quarterly net profit -- as the Pune, India-based company's revenue grew 65% to 37.37 billion rupees.

As against this, Hero Honda -- the New Delhi-based affiliate of Japan's Honda Motor Co. (JP:7267 2,818, +109.00, +4.02%) (HMC 31.77, +0.77, +2.48%) -- surprised the market negatively by posting its first decline in quarterly net profit in nearly three years. Net profit for the maker of the Splendor, CBZ X-Treme and Hunk motorcycles dropped 1.6% from a year earlier to 4.92 billion rupees.

Bajaj's superior earnings performance is only expected to see it find more takers in the equity market. Investors have already been lapping up red the company's shares, taking notice of its strong showing quarter after quarter.