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| Edited By: Sourav Sen |Source: DNA |Updated: Mar 30, 2018, 03:15 AM IST
Other income of around Rs 82 crore pushed up Bajaj Auto Ltd’s already healthy June quarter net profit, helping it more than double year-on-year.
The country’s second-largest motorcycle maker on Thursday said its net profit for April-June rose 101% from a year ago to Rs 590 crore.
Along with its earnings, the Pune-based company declared a bonus issue of one share for every share held, which buoyed its stock.
Earnings were fuelled by a sharp rise in its sales volumes during the quarter, the first of the financial year. Bajaj Auto’s total sales during April-June rose nearly 70% on year to 9,28,336 vehicles. Motorcycle sales rose around 72% to 8,28,391 vehicles, while three-wheeler sales were up 58% during the three months to 99,918 vehicles.
Exports rose the highest by around 82% during the reporting period.
In value terms, net sales jumped 65% on year to Rs 3,737 crore.
Spikes in raw material prices had raised concern over automobile manufacturers’ profit margins for the June quarter, but buoyancy in sales more than helped mitigate them. During the quarter under review, Bajaj spent Rs 2,556 crore on raw materials, 80% more than the corresponding quarter last year.
The company reported an earnings before interest, tax, depreciation and amortisation margin of 20% for the June quarter.
The Pulsar and Discover brand of motorcycles — the company’s leading brands — contribute over 80% to the its domestic motorcycle sales.
Sales of the Pulsar range averaged 76,000 units a month, while the Discover brand of motorcycles clocked an average 110,000 units every month.
Vice-president (business development) S Ravikumar said total sales in the current quarter should be better than April-June. “Now that the capacity constraint issued has been dealt with, we should certainly do better than the previous quarter,” he said.
Bajaj Auto’s motorcycle manufacturing capacity has been raised to 3 lakh units per month from this month, while three-wheeler monthly capacity has been hiked to 35,000 units.
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