New Delhi, Jan. 30 -- With premium motorcycles and the overseas markets powering its growth, Bajaj Auto Ltd has now started work to turn around Austrian motorcycle maker KTM, its largest-ever acquisition. These growth drivers give the Pune-based two-wheeler major the financial muscle as well as strategic push to revive the iconic brand.

The company, India's fourth largest two-wheeler manufacturer by sales, posted a 25% year-on-year rise in consolidated net profit to Rs.2,749 crore in the December quarter, helped by a stronger product mix, as customers upgraded to higher-end models after cuts in the goods and services tax (GST). Revenue rose 23% to Rs.16,640 crore.

Executive director Rakesh Sharma said KTM's revival plan hinges on three ...