The Hindu Business Line : Bajaj posts record profit, sales in Q2

Pune, Oct. 15 Bajaj Auto has just had its best quarter ever in its history with net profit up 118 per cent to Rs 402.83 crore from Rs 184.91 crore in the same period last year.

The total income was up 15 per cent to Rs 2,887.51 crore from Rs 2,519.18 crore in the second-quarter ended September 30. The operating earnings before interest, taxes, depreciation, amortisation margin were the highest ever thus far at 22 per cent against 13.6 per cent last year and surpassing the previous record of 19.5 per cent in the preceding quarter.

Exports during the period were again the best ever in a quarter with 2,24,334 vehicles translating into revenue of Rs 799 crore. In contrast, the same period of last fiscal had seen 2,06,930 vehicles exported yielding Rs 714 crore. Bajaj expects to top its annual target of 8 lakh units set for this fiscal.

However, the Bajaj Auto stock declined 3.37 per cent to end at Rs 1,554.

Mr Kevin D’Sa, Vice-President, Finance, said that the good results were on account of the strategy to focus on the more profitable category of bigger and sportier bikes. The company will continue to build brands going forward.

The new Discover, in particular, has turned out to be a volumes spinner with sales crossing one lakh units in the first 50 days after launch and cumulative sales to date in excess of 1.6 lakh units.

Total sales of motorcycles during the quarter were up seven per cent to 5,99,641 units from 5,61,477 units in the previous year. Three-wheeler sales increased 14 per cent to 85,246 units from 79,944 units.

Bajaj has already indicated that it will focus on the Pulsar and Discover brands as its key growth drivers for the future. Ideally, the company would like to post sales of one lakh units of each brand by March 2010 with the Platina and XCD fitting more into the product genre. The fiscal could see at least two more bike launches.

The recent launch of the Kawasaki Ninja is meant to give a further leg-up to the premium brand in bikes and also marks the strengthening of the Kawasaki association both here and abroad.