Bajaj Auto steps on gas with 23% net increase

BS 200 SCORECARD

Riding on better margins, the country's second largest two-wheeler manufacturer Bajaj Auto posted 23.14 per cent growth in its net profit at Rs 345 crore for the quarter ended on December 31, 2006, against Rs 280 crore for the corresponding period of the previous year.

Total income from operations grew by 28.40 per cent at Rs 2,568 crore for the reporting quarter against Rs 2,000 crore for the same period of the previous year.

The company's net profit grew by 19.25 per cent at Rs 929 crore for the nine-month period ended December 31, 2006, against Rs 779 crore for the corresponding period last year.

The total income for the company grew to Rs 7,206 crore during the nine-month period, registering a growth of 30.97 per cent as compared to the previous year's Rs 5,502 crore. 
 

Rs crore	Quarter ended Dec
	2005	2006	% chg
Sales	2000.90	2568.20	28.35
Other income	106.40	161.00	51.32
Total income	2107.30	2729.20	29.51
Operating profit	464.40	524.40	12.92
Profit before tax	404.50	464.80	14.91
Net profit	280.00	344.80	23.14
EPS (Rs)	27.50	34.10	24.00

Bajaj Allianz General Insurance, one of its group companies, posted a third quarterly net profit ended December 31, 2006, at Rs 8.6 crore, a growth of 126 per cent as against Rs 3.8 crore in the corresponding quarter last year.

The gross written premium for the quarter grew by 38 per cent and was at Rs 460 crore as against Rs 330 crore last year. Bajaj Allianz Life Insurance's gross written premium for the quarter was Rs 1,100 crore, up by 36 per cent as against the total of Rs 800 crore registered in the same quarter last year.

Bajaj Auto Finance grew to Rs 782 crore for the quarter ended December 31, 2006, up by 35 per cent as compared with Rs 580 crore for the same quarter of 2005. Profit after tax increased to Rs 24.3 crore.

Announcing the results, Rajeev Bajaj, managing director, Bajaj Auto, said: "Bajaj is making an all-new platform for bikes, which will be catering to the 50 cc to 150 cc range. The new platform will make bikes, which will form the entry-level segment and will be way ahead of the competition."

Bajaj increased its share in the two-wheeler segment from 32 per cent to 35 per cent. Accordingly, its share in the 100 cc entry-level segment increased from 42 per cent to 45 per cent.

"The Indian market is changing and we are witnessing a transition from 100 cc to 125 cc of bikes. The customers will be opt for our new range of bikes, which will be more comfortable and easy to handle, even as they conform to stricter emission norms and don a complete new range of style," said Rajeev Bajaj. Earnings per share during the quarter increased to Rs 34.1, up from the previous year's EPS of Rs 27.5.

For the nine months ended December 31, 2006, earnings per share of the company stood at Rs 91.8 as compared with Rs 76.7 for the previous year.