Domestic two-wheeler major Bajaj Auto Ltd on Thursday reported a marginal decline of 0.2% in net profit for the fourth quarter ended March 31 to Rs764 crore against Rs766 crore a year ago on the back of a 4.6% decline in sales.
The company’s performance was well below expectations as the gains from export revenues was more than offset by the decline in the domestic market that has been crippled by a sluggish economy.
Net sales during the quarter grew 3.4% to Rs4,823 crore over Rs4,651 crore a year ago. For the full year, the company’s net profit grew 6.5% to Rs3,243 crore in 2013-14 and sales rose 11.7% at Rs19,717.64 crore.
The company said the financial year had been a difficult year for the automobile industry with an "environment of overall high inflation and slow growth."
The stock market was, however, unimpressed with the company’s financial performance with shares closing at Rs1,953, down 4.28% on the Bombay Stock Exchange.