Bajaj Auto net profit soars 163 percent
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Boosted by an exceptional gain of Rs.827 crore, Bajaj Auto Wednesday reported
an increase of 163 percent in its net profit for the fourth quarter of last fiscal year at Rs.1,400 crore.
Bajaj Auto in the like period of 2009-10 had reported a net profit of Rs.532 crore.
"Sales tax deferral incentive/loan, to the extent eligible under Maharashtra Value Added Tax Rules, has been prepaid at a discounted value of Rs.368 crore, thereby resulting in a surplus of Rs.827 crore," the company said in a regulatory filing.
The significant surplus has been reflected as an exceptional item in the profit and loss account.
The company's margins improved with EBITDA (earnings before interest tax deduction amortisation) at 20.5 percent for the quarter under review.
"Focus on high-end motorcycles and near-record sales of commercial vehicles enabled the company to record healthy operating EBITDA margins at 20.5 per cent," the company said.
Total motorcycle sales grew by 17 percent in the quarter ending March 31 to 836,671 units, while commercial vehicle sales rose by 16 percent to 111,527 units.
Meanwhile, the company reported an increase of 96 percent in its net profit for fiscal 2010-11 at Rs.3,340 crore as against Rs.1,704 crore it clocked in 2009-10.
The year saw motorcycle sales, including exports, rising 35 percent to 3,387,043 units helping the company gain an additional 2.4 per cent of the domestic market share in the motorcycle segment, where the company is the second largest manufacturer and seller.
The company sold 2,414,606 bikes in the domestic market with an increase of 36 percent, while it exported 972,437 units with a growth of 34 percent.
"The bigger and sportier motorcycles contributed in excess of 70 percent of total motorcycles sold. Pulsar, cumulative sales exceeded 4 million units in February 2011," the company said.
In terms of commercial vehicles, the company witnessed a cumulative growth of 28 percent at 436,884 units. Domestic sales of the vehicles grew 17 per cent at 205,603 units, while exports soared 40 percent to 231,281 units.
"Sales in domestic market largely driven by alternate fuel vehicles and diesel passenger carriers."
Exports across categories, grew by 40 percent in 2010-11 with the company earning Rs.4,552 crore by way of overseas sales.
Bajaj Auto said that "demand from overseas market remained robust".
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