Rising interest rate regime, lack of finance options and increasing input costs have taken a toll on Bajaj Auto Ltd?s bottomline. Despite topline going up 9% to Rs 2,340 crore in the first quarter of 2008-09, the operating profits and net profits have dipped. PBT is down to Rs 261 crore from Rs 274 crore same quarter last year while PAT is now to Rs 175 crore from Rs 183 crore. The overseas investment in the Indonesian market too is making losses.
Motorcycle sales are up 13% to 5,58,633 units in Q1 compared to industry growth rate of 11%, Rahul Bajaj, chairman of Bajaj Auto said. The company was not able to pass on the cost rise to the customer, he added. Exports have grown 33% and now account for one third of the company?s total sales. Three-wheeler sales have skidded by 19% to 58,118 units from 71,336 units last year same quarter. Rajiv Bajaj, MD, Bajaj Auto said EBITDA margins are returning to the previous highs. This has bottomed out and is moving up and is going back to 12.9%.