Bajaj Auto reported fourth-quarter profit above market estimates on Thursday, as higher motorcycle exports and foreign exchange gains made up for a slump in domestic demand.

The company reported a profit of ₹2,049 crore for the January-March period, compared with analysts’ average estimate of ₹1,995 crore.

Bajaj, India’s top auto exporter by volume, reported a 20% jump in overseas shipments. In contrast, domestic sales fell 8%.

Export growth and realisations could have been higher if not for the suspension of exports of higher-priced KTM motorcycles. Bajaj said last week it would take a controlling stake in the troubled Austrian automaker.

Bajaj’s two-wheeler sales grew about 3%. Its overall sales, including three-wheelers, also climbed 3%. The company’s quarterly revenue rose 6% to 121.48 billion rupees.

Earnings before interest, taxes, depreciation and amortisation margin rose to 20.2% from 20.1% a year ago. Shares of Bajaj Auto closed 0.3% higher before the results were announced.

Bajaj Auto Ltd on Thursday said it intends to acquire majority stake in financially troubled Austrian bike maker KTM through its wholly-owned subsidiary Bajaj Auto International Holdings BV, which has arranged a debt funding package of 800 million euro (about ₹7,765 crore).

With this action and post requisite approvals coming through, Bajaj will shift gears from being a dormant minority investor to a majority owner in the global KTM company, Bajaj Auto said in a statement.

The company will continue to accelerate KTM business that is run out of India under the joint development programme, where it develops, makes and sells in India as well as exports to 80 countries across the KTM network, it added.

Bajaj Auto International Holdings BV (BAIHBV) has arranged a debt funding package of 800 million euro to enable the continuity of the KTM business by paying off the approved quota to the creditors in furtherance of KTM’s debt restructuring with the approval of the competent Court in Austria and infusing funds into the company to revive its operations and working capital cycle, the statement said.

“Of this total 800 million (euro) debt package, 200 million (euro) has already been infused into the company so far and the balance 600 million (euro) is being done now,” the company added.

This twin move of taking ownership, subject to approvals and paring down debt by providing liquidity at a crucial stage, positions Bajaj Auto as a driving force in shaping the future of KTM, one of the major high performance motorcycle companies in the world, it added.