Bajaj Auto's Q1 net profit doubles on strong sales
23 July 2010
Robust demand for newly-launched motorbikes and good sales of high-end bikes more than doubled Bajaj Auto's first-quarter net profit to Rs590 crore. In the year-ago quarter, the country's second-largest bike maker had posted a net profit of Rs293.49 crore.
The result met analysts' expectations.
They had expected the bottom line to be in the range of Rs575-590 crore.
''During the current year, barring unforeseen events, the company will cross Rs2,000 crore in net profit and four million vehicles in sales,'' Rahul Bajaj, Chairman, told shareholders at the annual general meeting here on Thursday.
The company's board also announced one bonus share for every share held, which will see its authorised share capital double to Rs300 crore.
In the quarter through June, net sales rose 65.5 per cent to Rs ,737 crore, against Rs2,258 crore in the same quarter last year. Sales of vehicles (two- and three-wheelers) went up 69.5 per cent to 9,28,336 units, compared to 5,47,662 units last year.
Turnover for the quarter was 68 per cent higher at Rs3,972 crore (Rs 2,362 crore) while sales in numbers at 928,336 units were up 70 per cent. All this led to Bajaj Auto's market share improving to 33 per cent (25 per cent). EBITDA margin improved from 19.5 per cent to 20 per cent.