Bajaj auto to launch 9 new models

17 January 2009

It is perhaps the sign of times that the biggest two-wheeler manufacturer reported a 23 per cent drop in net profit to Rs164 crore during the third quarter ended December and yet saw its stock price rise by 4 per cent.

With the announcement of its third quarter results the company also said that it plans to launch 9 new models in the next nine months. Six of these models will be two wheelers and three models in the three wheelers segment.

Bajaj Auto reported a sharp improvement in operating margins to 14.5 per cent of net sales compared with 2.5 per cent in a year before. The company attributed this to shift in its product-mix in favour of high-margin 125 cc motorcycles.

It has also reported a continuously improved product mix with the more profitable 125 cc bikes now constituting 63 per cent of its portfolio.

Boosting bottom line
Cost cutting measures have worked in favour of improving margins at Bajaj Auto

The company has been running a lean operation with two-thirds of its employees retiring