The Hindu : Business : Bajaj Auto net profit zooms

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Wednesday, Oct 20, 2010
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Business

Bajaj Auto net profit zooms

Special Correspondent

It is on course to achieve the sales target of 4 million units

MUMBAI: On the back of improved product mix and high operating margins, Bajaj Auto (BAL) has reported a record net profit of Rs.682 crore for the second quarter of 2010-11, which is a 69 per cent growth over the year-ago figure of Rs.403 crore. The turnover jumped 52 per cent to Rs.4,426 crore from Rs.2,909 crore and it recorded a 44 per cent higher operating profit of Rs.867 crore (Rs.603 crore).

For the first time ever, the company's quarterly vehicle sales crossed one-million units at 10.01 lakh units (6.87 lakh units), a growth of 46 per cent. Record volumes achieved by the Pulsar and Discover during the quarter helped the operating margins improve from 20 per cent in the first quarter of the year to 20.7 per cent in the second quarter; maintaining best margins in the industry.

In motorcycles, domestic sales were up 53 per cent at 6.33 lakh units (4.13 lakh units) while exports were up 35 per cent at more than 2.50 lakh units.

Total motorcycle sales grew 47 per cent to 8.83 lakh units and the company's share in the motorcycle market jumped to 34 per cent from 29 per cent a year ago.

According to a release, production constraints limited motorcycle sales but the second plant at Pantnagar which commenced production a fortnight ago will take the company's total motorcycle annual capacity to 15 lakh units.

The company also saw record commercial vehicle (CV) sales during the quarter with a 28 per cent spurt in domestic sales at 60,566 units (47,314 units) and 50 per cent growth in exports at 56,510 units (37,932 units).

Total exports were up 44 per cent at Rs.1,153 crore (Rs.799 crore) and 37 per cent in unit terms at 3.07 lakh units (2.24 lakh units).

The company expects to exceed exports of one-million units for the full year and in its outlook for the year, the company said that it was “on course to achieve the target of 4 million units sales for the year and an operating profit margin of 20 per cent.”

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