MUMBAI: Driven by higher volumes, Bajaj Auto, the second largest two-wheeler manufacturer, has reported a 31% rise in net profit for the fourth quarter ended March to Rs 196.3 crore, while total income surged 18.4% to Rs 1,347.8 crore.
For the full fiscal, the Bajaj group flagship posted a 17% rise in sales to Rs 5,270.3 crore, its highest ever, while net profit rose 38.5% to Rs 731.5 crore.
Profit before taxation jumped 22% to Rs 960.4 crore, while gross profit shot up 19.8% to Rs 1,205.3 crore. Operating margins, however, fell 17% from 19%, which the company says is on account of rising raw material prices and a provision of Rs 41.5 crore towards estimated liability for settlement of claims made by temporary workmen.
Sales volumes during the fiscal rose 5% to 1.5m units, while motorcycle sales rose 18% to 1.02m units. Exports surged 66% to 1.6 lakh units.
The company’s board of directors, which met in Mumbai on Wednesday, decided against the sub-division of its share capital, and instead recommended a hike in dividend payout to Rs 25 per share (250%), up from Rs 14 per share (140%) in the previous fiscal.
“The board of directors considered the issue of sub-division of shares, but decided against it at this point in time. The board decided to increase the dividend payout instead as a pro-shareholder measure,“ said Sanjiv Bajaj, executive director at Bajaj Auto.
For the current fiscal, the company is eyeing a 15% rise in motorcycle volumes, largely driven by its soon-to-be launched entry level bike, CT 100, which will be augmented with a new executive segment bike, codenamed K60, slated for launch later this year.
“With the K60, we are going to present a significant challenge in the executive segment, which is everything to Hero Honda. We have worked very hard to develop this new bike and strongly feel that it will create a stir in the market,” Bajaj Auto’s joint managing director, Rajiv Bajaj, said.
Hero Honda, with large selling models Splendour Plus and Passion Plus, is a leader in the executive segment with a market share of around 70%. Bajaj Auto, which sells the Caliber 115 and Wind 125, has only about 12% in the executive segment.
The entry level segment is more competitive with Hero Honda’s CD Dawn leading the segment, followed by Bajaj Auto’s Boxer. However, Bajaj Auto is a clear leader in the premium segment where its Pulsar has a 60% plus market share.
“With the new launches, we are aiming to increase our overall market share in motorcycles to 30% from the current 25%,” Mr Rajiv Bajaj added.
|
