Bajaj reports lower than expected Q4 results
23 May 2008
Mumbai: Bajaj Auto Ltd has blamed rising input costs and lower sales for unsatisfactory Q4 results. The company reported a net profit of Rs120.67 crore in the fourth quarter ended March 31, 2008, on sales of Rs2,275.87 crore.
Two- and three-wheeler sales in the quarter stood at 3.94 lakh units, a decline of 23 per cent as against 5.11 lakh units in the previous corresponding quarter. Income from operations stood at Rs 2,074 crore.
For the full year ended March 2008, the company reported a net profit of Rs755 crore while total turnover stood at R 9,046 crore.
Bajaj Auto limited was demerged in April 2007, to form two subsidiaries to form Bajaj Holdings & Investments Ltd. (BHIL) and Bajaj Finserve, the financing company and as such the previous year's results are not strictly comparable.
The manufacturing undertaking was transferred to the new BAL and its strategic business undertaking consisting of wind farm and financial services business has been vested in Bajaj Finserv Ltd. (BFS). All the businesses and properties, assets, investments and liabilities of erstwhile BAL, other than the manufacturing undertaking, strategic business undertaking and part of the investments transferred to BAL and BFS remain vested with BHIL.
Bajaj Holdings & Investment (BHIL) reported a net profit of Rs307 crore on an income of Rs355.30 crore. The board of the company has recommended a dividend of Rs20 per share.
Bajaj Finserve reported consolidated revenues of Rs12,230 crore and a loss of Rs32.70 crore. The board of the company has recommended a dividend of Re1 per share (20 per cent).
Rajiv Bajaj, managing director, BAL, said, the company will focus on the motorcycle business, especially the higher end bikes. The company will not develop the 100cc bikes, he added.