A ₹340-crore liability on account of the payout of National Calamity Contingent Duty (NCCD) with retrospective effect has dented Bajaj Auto’s second quarter net profit in FY-15.

The Pune-based automaker’s profit after tax fell to ₹591 crore against ₹837 crore in the corresponding quarter of FY-14.

Explaining the liability, the company said it had filed a writ petition before the Uttarakhand High Court in October 2011, claiming benefit of exemption from payment of NCCD by its Pantnagar plant.

On October 9, 2014, the High Court ruled that the NCCD did not come under the purview of exemptions granted to it under the scheme of incentives.

Hence, Bajaj Auto has recognised the disputed duty amount for the last seven-and-a-half years – from April 1, 2007 to September 30, 2014, which is inclusive of interest and penalty aggregates to ₹340.29 crore.

This is a one-time charge and henceforth, the payout towards NCCD is expected at ₹3 crore a month, Bajaj Auto said in a statement.

Without the exceptional item, Bajaj Auto’s second quarter profit is ₹853 crore, a rise of 1.9 per cent year-on-year, while operating EBITDA margins stood at 20.8 per cent (23.1 per cent in Q2 FY-14). Total income from operations in the two quarters under review stood at ₹5,963 crore and ₹5,252 crore, respectively, a growth of 13.5 per cent.

Two-wheeler sales up

Motorcycle sales saw a growth of 7 per cent year-on-year to 10.5 lakh units in the September quarter against 9.88 lakh units a year ago.

Exports look up

Exports by volume and value grew 29 per cent and crossed the half-million-mark for the first time to stand at 5.19 lakh units, including 4.38 lakh motorcycles, and now contribute 47 per cent of net sales.

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