High interest rates, coupled with banks becoming more selective when disbursing loans continue to take their toll on the two-wheeler industry. India?s second-largest two-wheeler manufacturer, Bajaj Auto Ltd, on Thursday said its net profit for the fiscal ended March 2008 stood at Rs 755.9 crore.
This figure could not be compared with that of the previous fiscal since the erstwhile Bajaj Auto Ltd has now been demerged into three companies?Bajaj Auto Ltd (BAL), Bajaj Finserve Ltd and Bajaj Holdings & Investment Ltd?with retrospective effect from April 1, 2007. The earlier Bajaj Auto Ltd has been renamed Bajaj Holdings & Investment Ltd (BHIL) and is listed on the BSE. BAL and Bajaj Finserve will be listed on the BSE on May 26.
BAL?s turnover (net of excise) stood at Rs 9,168.8 crore for FY08. However, the company said total sales for the financial year dropped 10% to 2,451,407 units, against 2,721,824 units in the previous fiscal. BAL managing director Rajiv Bajaj said, ?I do not see any revival in sales this fiscal. We are prepared for a flat market.?
He attributed this outlook to the ?fundamental pullback of finance?. For two-wheelers, the company reported a drop of 10% in sales to 2,161,095 units from 2,399,996 units the previous year. ?We are aiming at a 25% marketshare in the mid-segment by this year end,? he added.
