Bajaj Auto Q2 net profit declines 6.9%

BS 200 SCORECARD

Bajaj Auto's net profit for the quarter ended September 30, 2004, has slipped 6.9 per cent at Rs 179.9 crore, against a net profit of Rs 193.3 crore, posted in the corresponding quarter of the previous year.

However, the company recorded a rise of 15.9 per cent in its net sales for the quarter at Rs 1,448.25 crore, against net sales of Rs 1,249 crore in the corresponding period of the previous year.

Sanjiv Bajaj, executive director, Bajaj Auto, said, "A lower net profit is due to the impact of the effective tax of 32 per cent, which is higher than the effective tax rate of 27 per cent in the corresponding period last year, as there were some non-operating tax-free investments made in the period. Higher steel prices have also impacted the bottomline."

The company's EBIDTA margins were down to 16.8 per cent compared with margins of 19-20 per cent in the corresponding period of the previous year, he added. The Bajaj scrip fell 2.29 per cent on the Bombay Stock Exchange today, to close at Rs 982.35.

The company's motorcycle sales grew 34 per cent at 3.36 lakh vehicles, compared with 2.5 lakh vehicles in the corresponding quarter of the previous year. Total sales increased 17 per cent at 4.45 lakh units, against 3.8 lakh units in the corresponding period of the previous year.