Bajaj Auto net rises 16.4 pc

MUMBAI, MAY 11: Bajaj Auto Ltd has reported a 16.4 per cent growth in the net profit during the fiscal ended March 1999 despite a sluggis...

MUMBAI, MAY 11: Bajaj Auto Ltd has reported a 16.4 per cent growth in the net profit during the fiscal ended March 1999 despite a sluggish growth in the scooter segment. The company8217;s board of directors, which met on Tuesday, recommended a dividend of Rs 8 per share 80 per cent the same as last year.

The net profit increased to Rs 540.52 crore from Rs 464.15 crore last year, while profit before taxation shot up 10 per cent from Rs 689.15 crore to Rs 758.52 crore during the period. Sales and income from operations were higher at Rs 3642.05 crore, up 11.3 per cent from the previous fiscal. Even other income increased by 13.9 per cent from Rs 232.79 crore to Rs 265.15 crore during the period.

While the total dividend outgo at Rs 95.51 crore remained at last year8217;s level, the tax to be paid by the company on the dividend payout increased marginally from Rs 9.55 crore to Rs 10.51 crore. The Bajaj Auto stock gained by a whopping Rs 45.95 to close at Rs 620.95 per share on the Bombay Stock Exchange. Volumespicked up sharply as 9.11 lakh shares changed hands at the bourse.

During 1998-99, Bajaj Auto8217;s gross profit before interest and depreciation increased to Rs 895.81 crore, up from Rs 841.14 crore, and gross profit before depreciation and taxation increased from Rs 832.77 crore to Rs 891.22 crore. Exports increased from Rs 140.77 crore to Rs 157.93 crore last year.

The earnings per share shot up to Rs 46.31 from Rs 38.75 last year and cash earnings per share increased from Rs 50.77 to Rs 57.42 per share. Total expenditure was higher at Rs 3,011.39 crore as against Rs 2,662.95 crore last year. Interest charges dropped sharply to Rs 4.59 crore from Rs 8.37 crore, while provision for depreciation was also lower at Rs 132.70 crore from Rs 143.62 crore last year. The provision for taxation fell from Rs 225 crore to Rs 218 crore.

During 1998-99, Bajaj Auto produced 13,81,765 two-wheelers and three-wheelers including CKD packs, as against 13,54,482 units last year. Sales of two and three-wheelers stood at14,23,501 units including CKD packs, up from 13,33,798 units in 1997-98. The company8217;s market share in scooters inched up to 64.81 per cent from 64.49 per cent last year, while that in three-wheelers jumped from 82.08 per cent to 83.64 per cent.

In an effort to maintain its lead over competition, Bajaj Auto has lined up a series of product launches in the current fiscal. The company plans to unveil Saffire8217; 8211; a 4-stroke scooter model and its 125 cc motorbike Prowler in the current fiscal. The company plans to launch 4-stroke versions of its M-80 model and three-wheelers later this year and is in the final stages of developing a three-wheeler version which will have the option to run on either petrol or compressed natural gas.

Story continues below this ad

Bajaj Auto, however, lost market share, although marginally, in the Indian motorcycle segment to 61.84 per cent 64.84 per cent last year. In the Japanese motorcycle segment, however, the company8217;s market share increased from 15.84 per cent to 17.74 per cent.