Bajaj Auto posted 15.48% decline in its net profit at Rs 802 crore for the fourth quarter ended March 31, hit by lower sales and higher cost of compliance to upgrade vehicles, the company said on Thursday, sending shares down 2%.
The company had posted a net profit of Rs 949 crore during the same period of the previous fiscal.
Total income of the company declined to Rs 5,506 crore for the fourth quarter as compared with Rs 5,967 crore in the same period of previous fiscal, Bajaj Auto said in a statement.
The Pune-based two-wheeler maker sold 7,87,627 units in fourth quarter, down 9.72%, from 8,72,458 units in the same period of 2015-16 fiscal.
The company said rise in input material cost and increase in costs on transition from BSIII to BSIV compliant vehicles hit margins during the quarter.
For the year ended March 31, the company posted a net profit of Rs 3,828 crore, down 2.59%, from Rs 3,930 crore in the 2015-16 fiscal.
Total income declined to Rs 24,310 crore during the fiscal ended March 31, as against Rs 24,957 crore in the previous fiscal.
The company sold a total of 36,65,950 units during the 2016-17 fiscal, down 5.84%, from 38,93,581 units in the previous fiscal.
The company’s board, which met today, recommended a dividend of Rs 55 per share for the 2016-17 fiscal. The total amount of dividend and tax thereon amounts to Rs 1,916 crore.
Shares of Bajaj Auto today fell by over 2% after the company posted 15.48% decline in net profit for the fourth quarter ended on March 31, 2017.
The stock dipped 1.94% to settle at Rs 2,973.85 on BSE. During the day, it went down by 2.54% to Rs 2,955.50.
At NSE, shares of the company slipped 2.19% to close at Rs 2,973.10.
(With inputs from PTI)