Bajaj Auto, India’s second largest manufacturer of two-wheelers, reported a 2 per cent fall in consolidated net profit for the quarter ended March 31, 2022, weighed down by decrease in exports and disruption in supply chain yet helped by an exceptional item pertaining to incentive receivable from Maharashtra government.
The Board of Directors of Bajaj Auto has recommended a dividend of ₹140 per equity share which would amount to a total pay-out of ₹4,051 crore, the company informed.
The Pune-based maker of Pulsar motorcycles posted a consolidated net profit of ₹1,526.16 crore for the reporting quarter (Q4-FY22), as against ₹1,551.28 crore reported in the same quarter (Q4-FY21) in FY21.
The exceptional item for the reporting quarter contains ₹315.28 crore towards incentive receivable from government of Maharashtra under Package Scheme of Incentive 2007 for the period April 2015 to March 2021.
The total income of the company in Q4-FY22 fell 7 per cent to ₹8,263.70 crore as against ₹8,879.70 crore reported in Q4-FY22. This fall can be attributed to the 30 per cent slump in the company’s domestic two-wheeler volume, further accentuated by the 7 per cent drop in two-wheeler exports.
The Rajiv Bajaj-led company exports 60 per cent of its total volumes and is the country’s largest exporter of two and three-wheelers. Exports to Sri Lanka, which is one of Bajaj’s biggest markets, have been crippled following the economic unrest in the island nation.
Total sales (domestic + exports) of two and three-wheelers decreased by 17 per cent to 976,651 units during Q4FY22 as against 1.16 million clocked during Q4-FY21. Domestic two-wheeler demand has been weak for the past several months following an incessant rise in price of petrol as well as increase in product prices by the two-wheeler makers.
“The company continues to face severe supply chain challenges, especially in Q4-FY22, impacting sales of motorcycles and commercial vehicles,” Bajaj Auto said in a release.