Bajaj Tempo profit up 240%

By Our Corporate Bureau | 31 Jul 2003

New Delhi: Bajaj Tempo Ltd, the leading automobile manufacturer, has successfully carried forward the positive trend of registering an impressive growth in turnover to the first quarter of the current financial year 2003-04.

The company, which had recorded a remarkable 31-per cent increase in turnover for the financial year ended 31 March 2003, has now clocked an impressive 36-per cent growth in sales turnover for the first quarter ended 30 June 2003 as against the same period last year.

Bajaj Tempo has achieved a sales turnover of Rs 209.24 crore as against Rs 153.61 crore registered during Q1 of the corresponding period last financial year. The net profit also zoomed-up by 240 per cent from Rs 3.85 crore in Q1 of FY 2002-03 to Rs 13.08 crore in Q1 of this financial year.

The company has been able to achieve an overall growth of 36 per cent in sales for the first quarter ended 30 June 2003. Sales of all four-wheeled vehicles of the company have shown a substantial growth of 72 per cent (2,640 numbers in Q1 of FY 2003-04 as against 1,528 numbers in Q1 of FY 2002-03).

Additionally, the three-wheelers (passengers and goods carriers) have witnessed a significant increase of 26 per cent by registering sales of 5,532 units compared to 4,081 units recorded in the first quarter of the last financial year. Tempo''s Balwan range of hi-tech tractors has seen some contraction in sales, due to the non-availability of variants of models. The planned introduction of these new variants in the market has got delayed due to the delay in receipt of certification from the government.

In all the segments, Tempo''s growth in sales is faster than the market growth. In tractors also, Tempo has been able to hold its ground whereas the industry continued to shrink. The company sources have attributed the growth to product innovation and diversification supplemented substantially by increased thrust on strengthening the sales channel and aggressive promotional activities.