India second-largest two-wheeler major Bajaj Auto on Thursday reported a 45% year-on-year drop in net profit at Rs 772 crore in the January-March quarter and a 11% rise in turnover at Rs 4,790 crore during the period.
The company said that the Rs 1,400-crore profit a year ago was mainly on account of an exceptional gain of Rs 800-crore due to the prepayment of debt and therefore it was not comparable with the performance of the just-ended quarter.
For 2011-12, Bajaj Auto’s net profit declined 10% to Rs 3,004 crore while turnover rose 19% to Rs 20,136 crore, the highever ever for the company.
“Leaving aside the exceptional item of Rs 800 crore in the year-ago period, we posted a quarterly net profit growth of 12%,” said Ravi Kumar, senior vice-president, business development, Bajaj Auto.
Export continued to drive growth and accounted for 36% of the company’s production and 32% of its revenue. The company’s total sales during 2011-12 — including both motorcycles and three-wheelers — grew 14% to 4.35 million units. “This fiscal we will touch five million units,” said Kumar.
The company’s total motorcycle and three-wheeler sales crossed a million units in the January-March quarter (7% higher than the corresponding period of the last fiscal year).