Punters at the Bombay Stock Exchange (BSE) greeted the news with enthusiasm spurring the Bajaj Auto stock by Rs 22 yesterday to close at Rs 956 after opening at Rs 940.
Against Rs 177.58 crore of net profit in first half 1995-96, Bajaj Auto made Rs 225.9 crore this year. Gross sales moved up to Rs 1,602.92 crore from Rs 1281.05 crore last year. High rates and good demand in the inter-corporate deposit market gave a fillip to other income, which rose to Rs 109.56 crore from Rs 75.77 crore.
Gross profit increased to Rs 400.7 crore from Rs 307.7 crore last year. Interest costs declined to Rs 3.86 crore from Rs 4.18 crore, while depreciation went up to Rs 55.8 crore from Rs 40.7 crore. Analysts said the results were in line with expectations, but cautioned that second half performance will depend on sales in November, a critical month for the scooter and three-wheeler companies. Indications available so far are promising. For the first six months this year, Bajaj Autos production rose 22 per cent from 6.21 lakh vehicles to 7.58 lakh vehicles. Sales jumped 18 per cent from 6.13 lakh vehicles to 7.22 vehicles.
Though inventories have doubled, analysts said it should not cause alarm. The company has deliberately done this to cater to the booming demand in October and November, explained Hariharan of Prime Securities. At the end of September, vehicle stock stood at 45,186 against 21,753 last year. The companys price realisation has been higher in the first six months due to better product mix and this trend should continue, Hariharan added. The highest contributor to sales volume is Bajaj Classic in the two wheeler segment.
Bajaj Autos exports have declined and Abhay Laijawala of equity firm BZW Asia attributed this to troubled conditions in neighbouring countries like Pakistan, Sri Lanka and Bangaldesh. Total exports declined to Rs 87.51 crore from Rs 93.21 crore last year.
