A high operating margin helped India's leading scooter maker Bajaj Auto on Wednesday report a record net profit of Rs 1,400 crore for the fourth quarter of the financial year 2010-11, registering a 163% growth over the corresponding period last year.
Bajaj Auto sold 948,198 motorcycles and three-wheelers and reported a record Rs 4,200 crore turnover and Rs 831 crore profit from operations in January-March period.
The company board has also recommended Rs 40 per share dividend.
The company prepaid sales tax deferral incentive at a discounted value of Rs 368 crore and thus gained an exceptional income of Rs 827 crore during the quarter.
The richer product mix — bikes above 125 cc account for the 70% of the total volume — ensured a high margin of 20.5% despite input cost pressures.Rajiv Bajaj, managing director, Bajaj Auto has laid out the company's plans for launching an array of products. The high end KTM bikes will be launched towards the end of the year (Bajaj is the second major stakeholder in the Austria-based superbike company), while a 150-cc Boxer targeting the rural customers will be launched in July-September quarter. He said that the Bajaj four-wheeler, a people carrier, will be launched in the middle of 2012.
He also said that the company will foray into Brazil, Thailand and Malaysia this year.
For the whole fiscal, the company sold 3.38 million motorcycles and 4.36 million three-wheelers and reported Rs 16,975 crore turnover and a net profit of Rs 3,340 crore — the highest ever sales, turnover and profit.
"Our plan for this fiscal is a growth of 20%. We hope to sell 4.6 million vehicles this fiscal. We expect our exports to grow from 1.2 million to Rs 1.5 million units," said Bajaj.