The Hindu Business Line : Bajaj Auto posts 28 pc rise in Q1 net profit

Two-wheeler major Bajaj Auto Ltd has announced 28 per cent rise in net profit for the first quarter ended June 30, 2006, at Rs 266.01 crore on the back of higher sales of motorcycles and three-wheelers. The Pune-based company had posted a net profit of Rs 207.95 crore in the first quarter of the last fiscal.

Total income during the period grew by 33.02 per cent to Rs 2,297.22 crore, compared to Rs 1,726.93 crore in the first quarter of last fiscal.

Gross profit for the period was Rs 454.52 crore, up 29.7 per cent from Rs 350.22 crore in first quarter of the last fiscal.

The company said motorcycle sales rose by 34 per cent in first quarter, above the industry growth of 24 per cent. Sales growth in three-wheeled motor rickshaw segment grew by 33 per cent in the period.

Exports also saw a significant growth in first quarter at 95 per cent to 98,263 units as compared to 50,493 units in the same period last fiscal. The company said it gained market share by 33 per cent for the current quarter as against 31 per cent in 2005-06.

Analysts said the results were lower-than-market expectations. Market leader Hero Honda also let down expectations by announcing a 16 per cent rise in profits early this week.

Shares of Bajaj Auto ended lower by 2.61 per cent at Rs 2,642.80 on Friday.

The company said its new model - the Bajaj Platina, launched in April 2006 has seen very good response. Sales have crossed one-lakh units in just third month of its launch.

More Stories on : Financial Performance | Two/Three Wheelers | Bajaj Auto Ltd

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