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Robust exports, which contributed 34 per cent to the company’s total sales revenue, have helped Bajaj Auto Ltd (BAL) post a net profit of Rs 795 crore during the third quarter of the current fiscal. This translates into 20 per cent rise year-on-year in comparison to Rs 667 crore during the same quarter of FY ’11.
The company also gained by the dip in raw material prices, spending Rs 248 crore (7 per cent) lesser this quarter on this compared to Q3 of FY ’11.
Sales revenue in the comparable quarters stood at Rs 5,063 crore versus Rs 4,177 crore, respectively, a rise of 22 per cent. Revenue from exports grew 51 per cent to Rs 1,710 crore (including exchange difference). The EBITDA margin was 21 per cent (20.1 per cent in Q2 12), primarily on account of higher realisation from exports.
During the third quarter of this fiscal, BAL sold a total of 10,75,441 two and three-wheelers, reflecting 14 per cent growth year-on-year. However, total exports rose 28 per cent higher y-o-y to touch 3,80,912 units.
On the motorcycles front, sales in the domestic market were 6,43,395 units, up by 7 per cent, largely because of the slowdown in industrial sales at the end of November 2011. The overseas sales grew 27 per cent to stand at 3,04,354 units.
Domestic sales of three-wheelers were virtually flat at 52,134 units (against 51,648 units), but the number of vehicles exported was 76,558, higher by 35 per cent. Exports now account for 35 per cent of all sales.
The company said it is on course to exceed its total sales target of 1.5 million vehicles this fiscal.
During the quarter, Bajaj Auto received a show-cause notice of Rs 77.93 crore from the Commissioner, Central Excise & Service Tax, LTU Mumbai, for payment of National Calamity Contingent Duty (NCCD) on sale of vehicles from its Pantnagar plant.
Of this, Rs 67.62 crore pertains to a period before March 31, 2011, while the remaining Rs 10.31 lakh pertains to Q1 FY12. BAL has filed a writ petition in the Uttarakhand High Court disputing the applicability of NCCD. Pending a decision, no provision has been made for the notice amount in the books of account.
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