Bajaj Auto Q4 net profit down 49.79%
Bajaj Auto has reported a 49.79% decline in its net profit, at Rs 69.14 crore, for the period January-March 2009. The company had earned a net profit of Rs 137.71 crore in the year-ago period.
At 375,439 units, Bajaj's sales sales were down 22% during Q4 FY 2008-09, as compared to 482,912 units sold in the corresponding period last year. Consolidated total income during the quarter was down 8.61%, at Rs 1,883.27 crore, as compared to Rs 2,060.61 crore in Q4 FY 2007-08.
Bajaj Auto sold a total of 1.91 million two-wheelers during FY 2008-09, as compared to 2.1 million units during the year-ago period, a decline of around 11%. However, Bajaj is working on various things to remedy the situation. The company is working on a brand-new scooter with which it expects to be able to take on the Honda Activa, which is the biggest bestseller in its segment.
Bajaj is also pushing ahead with its made-in-China budget bikes for some of its exports markets. For India, the Pune-based company is all set to launch a new range of bikes, developed in collaboration with KTM, by early 2010.
[Via: indiaautomotive]
Bike sales grows, but at snail’s pace
Motorcycle sales have managed a modest growth between April-08 to Feb-09 despite the entry-level segment registering a decline. The on-going global economic slowdown played a key role in the slowing down of two-wheeler sales.
Adding fuel to the fire were the existing vehicle repossession norms and the lack of easy finance. The entry-level bike segment which accounts for around 70% of the two-wheeler market registered a decline in sales by almost 2%. A sales decline in this major segment should have caused a slump in the overall sales of the bike segment.
However, as per the latest figures from the Society of Indian Automobile Manufacturers (SIAM) the overall bike sales managed to grow by 51,687 units to a total of 53,13,145 units compared to 52,61,458 units in the last financial year. The overall two-wheeler sales were up marginally to 67,83,653 units from 66,18,302 units in the last financial year.
The entry-level market leader, Hero Honda was the sole manufacturer to register a gain by around 3 lakh units in the segment. Bajaj Auto sold around 2.75 lakh units less compared to the last fiscal year. TVS Motor Co sold 84,299 units less while India Yamaha Motor sold 23,353 units less compared to the same period last year.
Even in the executive segment Hero Honda registered a marginal gain while Bajaj Auto still sold lesser number of units compared to the last fiscal year. Overall sales in the executive segment increased to 15,29,362 units compared to14,09,380 units in the same period last year. The scooter segment grew overall to 10,59,054 units compared to 9,67,087 units in the same period last year. The sales of bigger scooters fell to 41,331 units compared to 58,880 units in the same period last year.
[Via: BIKE]
Bajaj to cut two-wheeler production
Bajaj Auto, the country's second largest two-wheeler manufacturer, may cut production as it sees a slowdown in motorcycle sales after the current festival season.
"We are preparing for a slowdown. This is the festive season, so demand is high but product rationalisation may happen from mid-November," Sanjiv Bajaj, executive director, told reporters at a conference. "Production cut is not a bad word for us."
Bajaj also said the company was extending credit directly to dealers and making faster payments to suppliers amid tight liquidity in the financial system. The statement comes amid uneasy financial conditions in the market which has dented consumer sentiment.
Stringent lending norms by banks and imposition of higher interest rates have affected the sales performance of the company. It is, however, expanding the reach of its in-house financing company, Bajaj Auto Finance, to all outlets to fill the void.
The company has seen a decline of 1.4 per cent in sales during the first half of the current financial year with sales of 786,000. In comparison, Hero Honda , the market leader, has posted a gain of 20 per cent in sales during the same period at 1.8 million units.
In September, however, sales rose 5.5 per cent on higher exports. Bajaj Auto shares rose Rs 6.25, or 1.2 per cent, to Rs 535.45 at the close of trading on the Bombay Stock Exchange today. They have dropped 11.5 per cent in the year compared with a 35 per cent drop in the benchmark Sensitive index.
Bajaj Auto recently launched a new motorcycle Platina 125 in an attempt to woo buyers in the festive season. The 125cc bike, which is priced at Rs 39,000 (ex-showroom) is cheaper than India's largest selling 100cc bike Hero Honda Splendor, which is priced at Rs 41,000.
[Via: Business-standard]
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