Bajaj Auto posts moderate 2 per cent rise in Q2
20 Oct 2012
Bajaj Auto has posted a moderate 2 per cent rise in September quarter net profit of Rs 740.67 crore, despite a challenging quarter, compared with a net profit of Rs 725.8 crore recorded during the same period a year ago.
''The quarter was a challenging quarter for the industry at large,'' Bajaj Auto said in a statement.
The motorcycle sector, which had reported an annual 15 per cent growth over the last four years, recorded a decline of about 9 per cent during the quarter. Added to this was the overall inflationary pressures, rise in input cost and depreciating rupee forcing the government to increase fuel prices.
Considering these situations, company's performance has been ''more than satisfying,'' it added.
During the quarter under review, the company's total income fell 4 per cent to Rs 5,139.12 crore from Rs 5,341.74 crore during the three month period ended September 30, 2011.
Bajaj Auto's strategy to focus on the high-end motorcycle segment of the market together with its variable cost structure ensured that in a subdued market there was no negative impact on operating leverage.
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