Subdued domestic demand and lower exports have impacted Bajaj Auto’s profits in the first quarter of 2012-13. Its net profit, at Rs 718 crore, grew one per cent in April-June 2012-13 over the corresponding previous period.
Turnover in the period under review stood at Rs 5,048 crore, up 4 per cent over Q1 FY12. Exports contributed Rs 1,738 crore to the revenue, a 3 per cent year-on-year growth. The operating EBITDA margin stood at 19.4 per cent compared with 19.1 per cent.
The company sold around 10.8 lakh units during the quarter, which was one per cent lower than the number of vehicles sold in the corresponding quarter of FY 12.
With more than 30 per cent of overall sales coming from exports, a 3 per cent drop in export volumes impacted sales as well as profits. First quarter exports were down at 4.16 lakh units against 4.27 lakh units in Q1 last year.
Sales of commercial vehicles in the international market were down 41 per cent, while motorcycle volumes grew 7 per cent at 3.6 lakh units.
Political unrest affected sales in Egypt, where the company sold 25,000 fewer units, while the duty hike in Sri Lanka resulted in lost sales of 20,000 units, Bajaj Auto said, adding that the African and Latin American markets performed well.
On the domestic front, motorcycle sales were down one per cent at 6.18 lakh units, while commercial vehicles sales were higher by 6 per cent.
Don’t shoot messenger ‘Time’: Rahul Bajaj
The Bajaj Group Chairman, Mr Rahul Bajaj, has come out in support of the Time magazine story on the Indian economy saying that the messenger should not be shot.
Speaking at the AGM of Bajaj Auto here today, Mr Bajaj said that while the cover was in bad taste, the story content was what people in India have been saying for the last many months. “I didn’t like the heading, and the cover was in bad taste, but what did they say wrong in the story. We have been saying this for the last four, six, eight months,” he said.