Bajaj Auto, Castrol & Tata Sponge Q3 results

CORPORATE SCORECARD

Bajaj Auto has registered a 53.3 per cent growth in net profit at Rs 280.03 crore during the third quarter of the financial year, compared with Rs 182.66 crore in the previous corresponding quarter. Net sales during the period went up to Rs 2,000.9 crore (Rs 1605.67 crore).

Sales growth in all product categories, good product mix and better management of operational costs have been cited as the reasons for the impressive performance. Profit before tax went up by 52.84 per cent to Rs 404.53 crore (Rs 264.66 crore). EPS stood at Rs 27.5 (Rs 17.9).

The impressive results pushed the sentiment at the Bajaj Auto counter. Shares of Bajaj Auto closed at Rs 2,012.8 on the BSE, 1.05 per cent higher than yesterday's close of Rs 1,991.95.

Sales of motorcycles increased by 16 per cent from 4.41 lakh units to 5.11 lakh units. Three-wheeler sales went up by 16 per cent to 57,572 units from 9,501 units.

Total sales went up 14 per cent to 5.43 lakh units for the period under review from 4.77 lakh units reported in the previous corresponding quarter. Bajaj Auto's exports for the quarter stood at 64,359 units, a 53 per cent growth over 42,141 units reported a year ago.

Castrol net rises 15%

Castrol India reported a 15 per cent growth in its net profit at Rs 147 crore for the financial year ended December 2005, compared with Rs 127 crore in the last year. Net sales saw an increase of nine per cent at Rs 1,430 crore (Rs 1,310 crore in 2004).

The company also reported a nine per cent growth in its gross profit to Rs 582 crore (Rs 533 crore). Profit before tax was reported at Rs 211 crore, an eight per cent rise from Rs 195 crore. Earning per share increased to Rs11.87 (Rs10.31) - an increase of 15 per cent.

"Castrol India has registered all round growth in volume, turnover and margins, resulting in the strong profit growth. This performance is really creditable considering that it has been achieved against adverse market conditions with unprecedented steep rise in cost of goods throughout the year," said Naveen Kshatriya, Managing Director.

During the period under review, the company relaunched Castrol Masterbrand and restructured its sales organisation and re-engineered the industrial portfolio.

Commenting on the non automotive business, Kshatriya said, "One of the highlights of the year was the performance of the industrial lubricant business which increased its contribution by over 60 per cent."

Tata Sponge net dips 84%

Tata Sponge Iron has reported an 84.4 per cent decline in its net profit at Rs 2.4 crore for the quarter ending December 2005 (Rs 15.4 crore in the same period last fiscal). Total income also dropped by 41 per cent at Rs 44.9 crore (Rs 63.77 crore). Gross sales reported a 44 per cent slide for the third quarter of FY 2005 at Rs 47.34 crore (Rs 68.54 crore).

The company clocked net sale of Rs 41.29 crore in the quarter ending December 2005, down 48 per cent from Rs 61.36 in the corresponding period last year.