Two and three wheeler major Bajaj Auto Tuesday reported an decrease of 29.4 percent in its net profit for the second quarter of the current fiscal at Rs.590.90 crore against Rs.837.16 crore in the like period of previous year.
According to the company, it has recognised a liability of Rs.340.29 crore for the last seven and a half years as a one time charge towards national calamity contingent duty (NCCD).
"The company had filed a writ petition before the High Court of Uttarakhand, in
October 2011, claiming benefit of exemption from payment of NCCD by our Pantnagar plant. On 9th October 2014, the High Court ruled otherwise," Bajaj Auto was quoted in a statement.
"But for the charge of this exceptional item, for the second quarter, profit after tax would have been a healthy Rs.853 crore - second highest in the history of the company, as against Rs.837 crore for Q2/ FY14."
The company reported a total turnover of Rs.6,077 crore, which is an increase of 14.68 percent from Rs.5,299 crore posted in the second quarter of previous fiscal.
The company's quarterly sales of motorcycles grew by 6 percent at 900,000 units. Domestic motorcycle sales grew by eight percent at 684,671 units, while exports zoomed by 37 percent at 342,686 units.
"Pulsar, along with Avenger, continues to be a dominant player and enjoys a domestic market share of 42 percent," the statement said.
Commercial vehicle segment reported a record sales of 156,000 units in domestic and international markets, its highest ever.
In terms of international business, volume crossed 500,000 units - 438,000 motorcycles and 81,000 commercial vehicles.
"Exports, by volume and by value, recorded a growth of 29 percent. Exports now contribute 47 percent of net sales. Mature markets continue to do well and new markets seeded over the last few quarters are yielding desired results," the statement said.
The statement added, that the company has improved its margins to 20.8 percent in the second quarter of the current fiscal.
"This (improvement in margins) is a reflection of the company's focus on innovation, differentiation and its brand centric strategy."
