| Bajaj: Racing ahead
Mumbai, July 26: Bajaj Auto Ltd, the Pune-based two- and three-wheeler major, has reported a 32 per cent increase in net profit at Rs 161.1 crore for the first quarter ended June 30 against Rs 121.8 crore in the year-ago period. The rise in net profit was achieved on the back of higher non-operating income at Rs 101.7 crore while income from operations stagnated.
Income from operations was pegged at Rs 1207.72 crore as against Rs 1202.52 crore in the first quarter of last year. Total income rose to Rs 1317.51 crore, an increase of 6 per cent compared with Rs 1246.75 crore in the first quarter of last fiscal year.
Exports grew impressively at 83 per cent on the back of sizeable orders for motorcycles and three-wheelers with total vehicles exported during the year pegged at 34,089 as against 18,670 vehicles during the corresponding period of last year.
Non-operating income for the first quarter trebled to Rs 101.7 crore as against Rs 34.3 crore in the corresponding quarter of last year.
Analysts attribute the growth in bottomline to higher non-operational income. “The growth in non-operational income was due to higher dividend and income from mutual funds at Rs 41.5 crore as against Rs 2.8 crore last year, while sale of investments made the company richer by Rs 33.9 crore.
Bajaj Auto’s three-wheeler business continued to do well during the quarter and has encouraged the company to increase its production capacity to 20,000 units per month by debottlenecking its plant at Waluj in Aurangabad.
In the executive segment, the recently-launched Caliber-115 has sold over 57,000 units in the quarter.
The company has made a provision of Rs 44 crore in the accounts towards likely impairment in investments as against a provision of only Rs 1 crore last year.
Analysts claim that the company which has been fairly aggressive in product launches is expected to maintain decent levels of growth
Bajaj Auto has no plan to offer Japanese company Kawasaki an equity stake in the company or any of its subsidiaries, chairman and managing director Rahul Bajaj said in Pune today.
Addressing the shareholders at the 58th annual general meeting, he said only for the purpose of marketing, Bajaj Auto may make use of Kawasaki channel to reach global markets.
Bajaj said the company would also launch a new bike in the current financial year which will complete the gamut of the middle segment bike.