Millennium Post
Business

Bajaj Auto Q1 net up 2.7%, sales volume down 9.2%

Bajaj Auto  Ltd (BAL) on Friday reported 2.68 per cent increase in standalone net profit for the first quarter ended 30 June, 2013 at
Rs 737.68 crore, while its sales volume dipped in a difficult market.

The company had posted standalone net profit of Rs 718.39 crore in the same period of previous fiscal.Net sales during the quarter stood at Rs 4,808.73 crore as against Rs 4,713.64 crore, up 2.01 per cent, Bajaj Auto Ltd said in a statement. Sales in terms of volume during the first quarter this fiscal stood at 9,79,275 units as against 10,78,971 units, down 9.23 per cent.

During the quarter, BAL said, its motorcycle sales were down by 12 per cent to 8,60,151 units as against 9,82,623 units in the corresponding period last fiscal. Its motorcycle sales in India were down by 8 per cent to 5,71,655 units as compared to 6,18,489 units in year-ago period, BAL said.  

'Given the present economic situation, high fuel price and negative sentiments, the size of domestic market for premium segment declined by 11 per cent in the first quarter of the current financial year (2013-14). Bajaj Auto Ltd, being the single largest player with a market share of 46 per cent in the segment, was more than proportionally affected,' it said.

Further, the labour unrest and stoppage of work in June 2013 at the manufacturing unit in Chakan has caused a loss in sales of 20,000 units of pulsar, it said. The company said its bike exports were also down 21 per cent to 2,88,496 units as against 3,64,134 units in the corresponding quarter last fiscal.

Sales in Egypt were hurt due to the political crisis, while ban of use of motorcycle taxis in a few provinces of Nigeria also hurt demand, it said, adding in Sri Lanka the company's sales were stable, it added.

In the commercial vehicles segment, the company said its total sales were up 24 per cent to 1,19,124 units as against 96,348 units in the year-ago quarter. While domestic commercial vehicles sales remained flat at 45,057 units in the quarter, exports jumped by 44 per cent to 74,067 units, it said, adding sales to Sri Lanka have been normalised while there was buoyancy in the Bangladesh market. Total revenue from the internal business stood at Rs 1,876 crore during the quarter, up 10 per cent from 1,710 crore in the same period last fiscal.
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