Hit by one-time expense, Bajaj Auto second-quarter net declines 29%

Written by fe Bureau | Pune | Updated: Oct 15 2014, 07:55am hrs
Bajaj Auto on Tuesday reported a 29.41% decline in its net profit to R590.9 crore for the three months ended September, hit by a one-time expense of R340.29 crore related to Pantnagar plant in Uttarakhand. Without this exceptional item, the net profit would have been R853 crore. The company had posted a net profit of R837.16 crore a year earlier.

Net sales rose to R5,826.85 crore against R5,061.49 crore in the year-ago period.

The company said it had filed a writ petition before the Uttarakhand High Court in October 2011, claiming benefit of exemption from payment of National Calamity Contingent Duty (NCCD). On October 9, 2014, the HC ruled otherwise. Accordingly, in this quarter, the company has recognised this liability for the last seven and a half years, it said.

The company has posted a 15.22% growth in sales revenues to R5,963 crore in Q2FY15. Bajajs total sales was at 10.55 lakh units. Of this, exports were at 5.19 lakh units with the export turnover at R2,376 crore. Operating ebitda was at R1,248 and ebitda margin was lower at 20.8% compared to the operating ebitda of 23.1% in Q2FY14.

Apart from the exceptional item, there was also a rise in other expenses. Bajajs other expenses have gone up by 20% to R4,904.93 crore. The company set aside R21.68 crore for CSR and there was a marked-to-market forex loss of R67.41 crore.

The company said that Q2FY15 was good for the high-margin business verticals of Pulsar, commercial vehicle, exports and auto spare part.