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Journalism of Courage
MUMBAI, Oct 27: Despite a recession in the auto industry, Bajaj Auto Ltd (BAL) has recorded a 10 per cent jump in its net profit during the half-year ended September 1998 to Rs 226.20 crore as compared to Rs 205.38 crore recorded in the same period of last fiscal.
Sales, including other income, were up by 12 per cent to Rs 1,820.94 from Rs 1,630.79 crore. Of this, exports accounted for Rs 82.71 crore, up from Rs 66.14 crore in the previous first half.
The earning per share, as a result, has gone up to Rs 37.56 as against Rs 34.88 after adjustment for issue of bonus shares allotted on October 1997.
The company has earned a higher gross profit of Rs 410.05 as against Rs 372.89 crore. The provision for depreciation amounted to Rs 80.85 crore (Rs 68.51 crore) and for taxation at Rs 103 crore (Rs 99 crore).
According to company, it has been able to maintain its 2-wheeler market shares with a volume growth of 13.9 per cent mainly due to the launch of three new products.
In volumes terms, the company sold6,01,092 two-wheelers (5,27,877) in the first half and expects a sales of about 6,75,000 two-wheelers in the rest of the fiscal.
BAL sold 85,898 (95,498) three-wheelers during the period and estimates a sale of about one lakh three-wheelers, including the new diesel wheeler, in October 1998-March 1999.
In the second half, BAL will launch the upgraded Super, Chetak, Classic-SL and M-80, a new 150 cc scooter (Bravo), a new 50 cc moped for the Tamil Nadu market, and a new 125 cc motorcycle (Prowler).
The Chakan plant is expected to be commissioned by March 1999. BAL’s total two and three-wheeler capacity will be over two million vehicles per year and all its products will be in a position to comply with the April 2000 emission norms, it claims.
