High Ride

Mumbai, May 19: Bajaj Auto Ltd today announced a 36 per cent jump in profit after tax to Rs 731.5 crore for the year ended March 31, 2004 compared with Rs 538.4 crore in the previous fiscal.

Riding on the back of robust motorcycle sales, which touched the 1-million-mark, the company registered a turnover of Rs 5,270.3 crore, up 17 per cent from Rs 4,485.7 crore in the previous fiscal.

The board announced a dividend of 250 per cent (Rs 25 per share) compared with 140 per cent in the previous financial year.

During the fourth quarter ended March 2004, the company recorded a consolidated net profit of Rs 179.99 crore against Rs 124.99 crore in the corresponding previous quarter.

Total income during the quarter under review rose to Rs 1,347.84 crore compared with Rs 1,138.03 crore in the year-ago period.

Sanjiv Bajaj, the new executive director for finance, told newspersons that the board had considered sub-division of shares but later decided against it and went for a more liberal dividend distribution in the interest of the shareholders.

Bulk of the profit has come from other income. Non-operating income for 2003-04 showed a spectacular increase at Rs 327.1 crore against Rs 145 crore in 2002-03.

Despite the bumper results, Bajaj Auto scrip today dipped by Rs 7 to 870.45 on Dalal Street, which means that the markets were not impressed with the fact that bulk of the profits came from non-operating income.

“This has played an important role in our bottomline,” acknowledged Bajaj. Three-wheeler sales and treasury operations contributed a significant amount to the company’s profits. Two-wheelers contributed less to the bottomline.

Pulsar, the company’s blockbuster bike, led the two-wheeler sales. It has cornered a sizeable market share in the premium segment. So far Bajaj Auto has sold 5,00,000 Pulsars and hopes to ride on the premium segment for a while.

The company is planning to launch two bikes for the entry level economy segment and the executive segment this year. To increase its volumes in the entry-level motor cycle market, the company has launched CT-100 this month. This bike with its leading performance and phenomenal fuel efficiency is expected to redefine the entry-level segment.