Bajaj Auto’s Q1 profit rise despite fall in sales
Bajaj Auto managed to report a profit for the April to June quarter of the current financial year despite a 9 per cent fall in the number of units it sold, thanks to rupee's depreciation.
During the three months ended June 30, Bajaj Auto sold 9.79 lakh units of two-wheelers, including 8.6 lakh motorcycles, as against 10.8 lakh units sold in the corresponding period of the previous year.
But, depreciation of rupee against the US dollar helped the company get more from exports. It witnessed an increase of 3 per cent in profit, from Rs 718 crore in the first quarter of last financial year to Rs 738 crore in the same quarter of current financial year.
The company's operating EBITDA margins jumped from 18.9 per cent to 21.6 per cent, while total income from the auto business climbed from Rs 4,955 crore to Rs 4,964 crore.
In a statement on Friday, the manufacturer noted that its strategy over the past many years to concentrate on international markets had paid it rich dividends.
The motorcycle giant added, "Taking into account the current trend of the rupee vis-a-vis the US dollar., a further benefit on account of depreciating rupee would accrue to the company in the coming quarters."
When asked about the ongoing strike at its Chakan manufacturing plant, the company said it had already obtained an injunction from the Pune-based Industrial Court against the strike, and that the injunction was in force. A hearing on dispute between Bajaj Auto's management and workers' union is scheduled for August 5, 2013.