Bajaj Auto Q1 net up 3% at Rs 737.68 cr
New Delhi: Bajaj Auto Friday reported 2.68 percent increase in standalone net profit for the first quarter ended June 30, 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 under review stood at Rs 4,808.73 crore as against Rs 4,713.64 crore, up 2.01 percent, Bajaj Auto Ltd (BAL) 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 percent.
During the quarter, BAL said, its motorcycle sales were down by 12 percent 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 percent 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 percent in Q1 FY14. Bajaj Auto being the single largest player with a market share of 46 percent in the segment was more that 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 percent 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 percent 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 percent 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 percent from 1,710 crore in the same period last fiscal.
Shares of Bajaj Auto were trading at Rs 1,948.80 per scrip during mid-day trade, up 2.72 percent from the previous close.
Commenting on the ongoing strike at the Chakan plant, the company said as of now around 700 employees, including unionised workmen, trainees, apprentices and staff are reporting to work. Production at the plant is around 1,700 motorcycles per day.
The plant at Waluj has commenced production of Pulsar motorcycle and is currently producing around 1,250 motorcycles per day.
On the rupee depreciation, the company said its strategy to hedge future earnings from exports has ensured the company's ability to leverage to its advantage the depreciation in rupee vis-a-vis the dollar.
"Taking into account the current trend of the rupee vis-a-vis the dollar and the current position of hedged contracts, a further benefit on account of depreciating rupee would accrue to the company in the coming quarters," the company said.