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Mumbai, May 18: Pune-based Bajaj Auto Ltd today beat analyst estimates by posting a 164 per cent growth in net profit for the fourth quarter ended March 31, buoyed by a strong growth in sales and a one-time exceptional gain.
The country’s second-largest motorcycle maker posted a net profit of Rs 1,400 crore compared with Rs 532 crore in the same period last year.
Turnover rose 25 per cent to Rs 4,301 crore from Rs 3,442 crore on the back of a 17 per cent growth in sales volume at 948,198 units.
Profit was also boosted by a Rs 827-crore exceptional income arising out of the prepayment of sales tax at a discounted value.
This was identified as an exceptional item in the profit and loss account, Bajaj Auto said.
Brokerages such as Emkay had expected the company to report an adjusted net profit (after adjusting the one-time income) of around Rs 660 crore.
Bajaj Auto said both the topline and profit numbers displayed the success story of its brand-centric strategy.
Motorcycle sales rose 17 per cent during the quarter to 836,671 against 712,410 in the same period last fiscal.
Commercial vehicle sales showed a growth of 16 per cent to 111,527 from 96,304 last year.
The company said its focus on high-end motorcycles and near-record sale of commercial vehicles enabled it to post healthy operating margins. Margins stood at 20.5 per cent, which was the best in the industry.
For the year, Bajaj Auto posted a 96 per cent growth in net profit at Rs 3,340 crore against Rs 1,704 crore in 2009-10. Turnover grew around 41 per cent to Rs 16,975 crore.
The good numbers, however, failed to lift the company’s shares on the Bombay Stock Exchange, which closed at Rs 1,286.65, down 1.65 per cent from the previous close of Rs 1,308.20.