Adverse market conditions impacted the sales and revenue of two-wheeler major Bajaj Auto Ltd (BAL).
The company has reported a net profit of Rs 741 crore for the second quarter ended September 30, 2012.
This translates into a two per cent rise over Rs 726 crore profit posted in the same quarter of the previous fiscal.
Its net income from operations in the quarter under review stood at Rs 4,972 crore, a drop of around 5 per cent compared with Rs 5,185 crore. On a year-on-year basis, the margins also took a dip with EBITDA standing at 19.7 per cent against 20.1 per cent.
Domestic Sales
The company’s total sales stood at 10,49,208 units versus 11,64,137, a drop of 10 per cent YoY.
During the quarter, BAL saw an overall drop of 10 per cent in its motorcycle sales. Domestic sales stood at 6,01,876 units, lower by around 12 per cent in comparison to those in the same period of last year.
Exports were affected to a lesser extent to stand 5 per cent lower at 3,26,648 units.
Commercial vehicles also took a hit with an overall drop in sales of 12 per cent, being greatly impacted by exports which were down 22 per cent to stand at 63,637 (81,448) units.
This was largely on account of higher duties in Sri Lanka, one of its major export markets.
However, Bajaj Auto said that with price rationalisation, average sale there has recovered to 7,500 commercial vehicles a month and the loss in sales in Sri Lanka is being partially off-set with gains in Egypt.
In the domestic market, commercial vehicle sales were higher by 3 per cent over last year to stand at 57,047 units.
Revenue from exports
Total revenue from exports dropped 4 per cent at Rs 1,665 crore against Rs 1,733 crore.
The quarter was a challenging quarter for the industry at large, Kevin D’Sa, President, Finance said, adding that the motorcycle industry which witnessed a CAGR growth of 15 per cent over last four years declined 9 per cent in Q2 FY13.
According to the company, Bajaj Auto share in domestic motorcycle market has increased from 23 per cent in April 12 to 27 per cent in September 12.
After payout of dividend and tax thereon in July (Rs 1,513 crore ), surplus cash and cash-equivalent as on September 30 stood at Rs 4,521 crore against Rs 5,682 crore as on June 30, 2012.