Bajaj Auto net rises 13.5% to Rs 614 cr

MUMBAI, MAY 16: Two-wheeler major Bajaj Auto Ltd (BAL) has posted an increase of 13.5 per cent in the net profit at Rs 613.73 crore for th...

MUMBAI, MAY 16: Two-wheeler major Bajaj Auto Ltd (BAL) has posted an increase of 13.5 per cent in the net profit at Rs 613.73 crore for the year ended March 31, 2000 as against Rs 540 crore recorded in the previous fiscal. Sales and other income rose by 7.9 per cent to Rs 4,215.55 crore as against Rs 3,907.20 crore.

Addressing a news conference here on Tuesday, Rajiv Bajaj, Vice President of the company, said Bajaj Auto will launch a slew of models in the current fiscal to increase its sales to 1.62 million units.

The new models include a new motorcycle code named 288C to take on Hero Honda’s CBZ and two versions of `Pulsar’, a 175 CC 4-stroke motorcycle. It will also launch a four-stroke M 80 to entice rural customers and a 2-stroke 60 cc scooterette called Sunny Spice targeted at teenagers. Also, on cards is a bike developed in association with Kawasaki, the 1800 cc Eliminator, priced at Rs 75,000. In the scooters segment, the company will launch the 4-stroke Fusion and Saffire — Bajaj’s first foray into non-geared scooter segment.

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Bajaj said the company would be required to invest huge sum in technology to increase its market share in the two-wheeler segment. This includes a Rs 90-crore R&D facility in its new plant in Chakan. The company plans to increase the production capacity of motorcycle to 50,000 units per month by October this year. “By October this year, the company will move into the top gear to make and sell the entire lot of 50,000 new vehicles,” Bajaj said.

In 1999-2000, the total production of two and three wheelers including CKD packs was 14,32,471 units as against 13,81,765 units in the previous year. The exports during the year was Rs 137.82 crore as against Rs 158.41 crore in 1998-99.

In three-wheeler segment, the company proposed to introduce LPG and CNG version vehicles in various states and the production has already started. It has started supplying CNG-driven three-wheelers to New Delhi last week.

Bajaj expected that in the current fiscal year, BAL would achieve a growth rate of 108 per cent ungeared scooter segment, 78 per cent in motorcycle segment, and 9 per cent in scooterette segment. However, it is expected to post a negative growth in the `matured’ segment of geared scooter in the current year.

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During the fiscal 2000, the company made a higher provision of Rs 970.54 crore towards depreciation and taxation as against Rs 891.22 crore in the previous year. The earnings per share improved to Rs 53.17 from Rs 46.31 in the previous year.

The board of directors which held its meeting here today, recommended that the interim dividend of Rs 10 per share paid on April 26, would be taken as final dividend for the year 1999-2000. The board also elevated Rajiv Bajaj as the President and Madhur Bajaj as the Executive Director of the company.