Bajaj Auto reports 15 per cent fall in Q1 net

Our Corporate Bureau
13 July 2007

Mumbai: Bajaj Auto has reported a 15 per cent drop in net profit for the first quarter of this financial year due to increasing competition, slowing demand for motorcycles and rising interest rates.

Bajaj Auto saw its net profit for the first quarter of the current fiscal drop by 15 per cent to Rs 226.5 crore from Rs 266 crore in the same period last year.

Meanwhile the industry slowdown witnessed from January continued. Net sales for the quarter ended June 2007 dropped to Rs 2,109.1 crore from Rs 2,202.6 crore.

Two-wheeler sales have dropped 13 per cent to 4,94,042 units, though exports of 1,49,804 two- and three-wheelers registered a healthy 52 per cent growth.

During the quarter, the company initiated structural changes in distribution, which has resulted in reduction of inventory at dealers by around 45,000 motorcycles.