Bajaj Auto Limited (BAL) surprised the market by reporting a 67% jump in PAT for the first quarter of the current fiscal. The company’s Q1 profits rose to Rs 293 crore, compared to Rs 175 crore in the first quarter of the previous year. Profit from operations was up 81% to Rs 422 crore, from Rs 233 crore during the same period last year. The company said earnings had improved because of a richer product mix, higher volumes and exchange rate benefits on exports. BAL?s total income in the quarter went up marginally by 1.43% to Rs 2,338 crore, from Rs 2,305 crore the previous year.
However, the total two and three wheeler sales was down 11.68% at 5,47,662 units from 6,20,095 in the first quarter last year. Export volumes in Q1 FY2010 were down 10.27% to 1,78,295 units compared to 1,98,717 in the first quarter of FY 2009. The company said it would be launching a new motorcycle; ?possibly the world?s most fuel efficient?, on July 17 and this ?volume? bike should enable the company to record high double-digit motorcycle sales growth. Bajaj stock hit the 52-week high mark on the back of these numbers and touched the Rs 1,212.15 on Thursday. Shares closed at Rs 1150.05, up 5.12% from the previous close. In December 2008, the stock had hit a low of Rs 294.65 because of slowdown in the economy and poor sales performance by the company.
The company is hoping to turn in a better performance in this financial year and favourable factors will include stable material costs, revival of exports, growth in the three-wheeler passenger segment and a strong demand for ?Pulsar? upgrade and launch of the new fuel efficient motorcycle.
Upgrades of ?Pulsar 150? and ?Pulsar 180? launched in May 2009 and these along with the ?Pulsar 220? has received a good response from the market and the full impact of these launches would be seen in the coming months, the company said. Domestic sale of the Pulsar in June 2009 was 42,000 vehicles as against an average of 28,000 during FY 2009.
Motorcycle sales in the first quarter of this year stood at 1,10,000.
