Hit by declining sales of its motorcycles, Bajaj Auto on Thursday reported a 14.86 per cent dip in profits at Rs 226.47 crore for the first quarter ended June 30, as against Rs 266.01 crore in the year-ago period.
MUMBAI: Hit by declining sales of its motorcycles, Bajaj Auto on Thursday reported a 14.86 per cent dip in profits at Rs 226.47 crore for the first quarter ended June 30, as against Rs 266.01 crore in the year-ago period.
The company said its total income (net of excise) decreased 3.71 per cent to Rs 2,211.80 crore for the quarter ended June 30, 2007 from Rs 2,297.22 crore during the corresponding period a year ago.
During the quarter, motorycle sales declined by 13 per cent at 4,94,042 units as against 5,68,187 units a year ago, it said.
Total two-wheeler sales also dropped by 13 per cent at 5,00,255 units as against 5,67,219 units in the corresponding quarter last year, it added.
The income attributable to consolidated group was Rs 201.15 crore for the quarter ended June 30, as compared to Rs 255.77 crore for the same quarter previous year.
BAL said its operating margins during the quarter stood at 13.2 per cent. Net sales or income from operations decreased from to Rs 2206.43 crore for the quarter ended June 30, Rs 2294.28 crore for the year-ago period.
The company said during the quarter it had initiated major structural changes in its distribution and logistics channel. The channel change resulted in reduction of inventory at dealerships by around 45,000 motorcycles.
On the demerger front, it said court-convened meetings of equity shareholders and unsecured creditors of the company are scheduled to take place on August 18 at Pune.
Bajaj Auto said during the quarter, its three-wheeler sales increased by one per cent at 71,336 units as against 70,875 units in the corresponding period a year ago.
The company's total two and three wheeler sales declined by 12 per cent at 5,71,591 units as compared to 6,47,094 units. Exports, however, increased by 52 per cent at 1,49,804 units as against 98,263 units in the year ago period.
BAL said its margins were under pressure due to competitive pricing in the 100cc segment, rising input costs and overall decline in volumes.
Besides, rising interest rates, constraints on credit and tightening of financing norms by banks impacted sales of overall motorcycle industry sales, it added.
Striking an optimistic note, BAL said it anticipated an improvement in market share and profitability in the second half of the year with the proposed launch of a new motorcycle in September this year.
During the quarter, BAL's subsidiary Bajaj Auto Finance posted profit after tax of Rs 4.1 crore as against Rs 3.4 crore with total disbursals increasing by 30 per cent at Rs 740 crore as against 570 crore in the same period a year ago.
Bajaj Allianz Life Insurance posted a profit of Rs 30.6 crore as against a loss of 19.1 crore, it said, adding Bajaj Allianz General Insurance posted a profit of 21.9 crore as against 18.6 crore in the corresponding period a year ago, up 18 per cent.
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