The Hindu Business Line : Bajaj Auto Q4 net down 4% at Rs 308 cr

Mumbai May 17 Bajaj Auto Ltd has registered a 4 per cent drop in net profit at Rs 308.3 crore in Q4 of 2006-07 (Rs 321.8 crore). The company's turnover for the quarter grew 9 per cent to Rs 2,471.3 crore (Rs 2,269 crore).

The dip in profit follows a slowdown in demand for the 100cc range in the Bajaj stable, said Mr Sanjiv Bajaj, Executive Director, Bajaj Auto. Inventory build-up at the dealer-end and rise in input costs since April 2006 dented the profit margins of the company; however, it was offset by high volumes with the company recording sales of 6,28,387 units in the fourth quarter compared with 6,19,330 in the corresponding period last fiscal.

More financials

For the fiscal year March 31, 2007, the company posted a 10 per cent rise in net profit at Rs 1,237.1 crore (Rs 1,123.3 crore). The turnover was at Rs 10,076 crore (Rs 8,106.4 crore) a rise of 24 per cent.

The EBITDA (earnings before interest, tax, depreciation and amortisation) margins were maintained at 15 per cent, the highest in the industry, according to a company press release. The board of directors has maintained the dividend at Rs 40 per share.

Total sales of two-wheelers for the fiscal stood at 2,399,996 units compared with 2,029,176 units in the previous fiscal. Market share of Bajaj in motorcycles climbed from 31 per cent in 2005-06 to 34 per cent in 2006-07 with growth being driven by Bajaj Platina annual sales of 7,40,000 units (4,68,000 units) and Pulsar with sales of 4,90,000 units (4,00,000 units).

Numero uno

For the year, the 100cc bikes contributed to 52 per cent of motorcycle sales. The company continues to be the numero uno player in two-wheeler exports with numbers crossing the 3-lakh mark at 3,01,766 compared with 1,74,907 units, a rise of 73 per cent.

For 2006-07, three-wheeler sales grew 28 per cent to 3,21,828 units (2,52,054 units) with exports constituting 45 per cent of total sales. Bajaj Auto is currently test marketing its two-stroke `Digital Direct Injection' three-wheeler in Pune, Maharashtra. The company's shares today dropped 6.71 per cent on the BSE to close at Rs 2,500.30.

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

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