Bajaj registers 50 per cent drop in net profit

Bajaj Auto, India's second-largest maker of two-wheel vehicles, has reported a 50-per cent drop in its consolidated net profit at Rs69.14 crore for the fourth quarter ended March 2009, as against Rs137.71 crore in the previous quarter.

The board has declared a dividend of Rs22 per share of the face value of Rs10 for the year ended March 2009, against Rs20 per share in the previous year. The consolidated total income was lower by 8.6 per cent at Rs1,883.27 crore, against Rs2,060.61 crore in the previous financial year.

Two wheeler sales volumes were down 22 per cent at 375,439 units against 482,912 units, and three wheeler volumes were down 7 per cent at 64,830 units against the previous 69,676 units.

For the fiscal ended 31 March, the company reported a 28.5 per cent lower consolidated net profit of Rs535.79 crore against the previous year'sRs749.58 crore. The profit was significantly lower by about Rs500 crore before tax owing to foreign exchange cover taken by the company and outgo on its voluntary retirement scheme.

Total income dipped 2.5 per cent to Rs8,814.81 crore. Two-wheeler volumes dipped 11 per cent to 1.92 million units and three-wheeler volumes were down 5 per cent at 274,529 units.

On a standalone basis, Bajaj Auto reported a 7.8 per cent growth in net profit at Rs130.21 crore for the fourth quarter on a lower sales of Rs1,883.40 crore.