Motorcycle major Bajaj Auto, on Thursday, reported a marginal drop in its net profit for the fourth quarter of 2012-13 at Rs. 766 crore (Rs. 772 crore).
The company reported a 4 per cent increase in turnover at Rs. 4,990 crore, although operating profit declined 4 per cent to Rs. 931 crore.
Total vehicle sales declined 4 per cent to 981,242 units while exports grew 5 per cent to 365,005 units.
“The reported operating margins have come in at 17.6 per cent as against 19.8 per cent in the same period last year. Lower volumes during the quarter would have led to negative operating leverage thereby impacting margins to a certain extent,” said Arun Agarwal, Auto analyst, Kotak Securities.
Motorcycle sales fell by 4 per cent to 859,695 units, with domestic sales down 10 per cent at 556,158 units. Exports grew by 8 per cent to 303,537 units.
Commercial vehicle (CV) sales grew marginally to 121,547 units with domestic sales up 13 per cent at 60,079 units and exports down 8 per cent at 61,468 units.
Despite a difficult year, Bajaj Auto reported its highest ever net profit in 2012-13, which was marginally higher at Rs. 3,044 crore on a 3 per cent higher turnover of Rs. 20,793 crore. Operating profit was marginally lower at Rs. 3,990 crore and operating margin was 19.6 per cent. The company declared a dividend of Rs. 45 per share.
Vehicle sales fell by 3 per cent to 42,37,162 units with exports down by 2 per cent. Motorcycle sales declined 2 per cent at 37,57,105 units with domestic sales down 4 per cent at 24,63,874 units. Exports grew 2 per cent to 12,93,231 units.
“In 2013-14, the company plans to launch various new products. We expect margins in FY14 to receive a boost from currency benefits in exports. Currently, the domestic two-wheeler demand is subdued and recovery there will be key factor to watch out for, going ahead,” Mr. Agarwal said.
The company will launch around 6 variants of the Discover and a few variants of Pulsar in FY14. K.Srinivas, President, Motorcycles, BAL, told The Hindu , “we will continue with our strong product differentiation which leads to brand strength. The rural economy accounts for more than half of motorcycle sales and initial forecasts report a normal monsoon.”
CV sales declined 7 per cent, with domestic sales up 11 per cent at 226,131 units. Exports fell 19 per cent to 253,926 units, mainly due to introduction of import barriers by Sri Lanka.
R.C. Maheshwari, President, Commercial Vehicles, BAL, said the company would introduce eight petrol and alternate fuel variants this quarter and some diesel variants in the second quarter.
Bajaj Finance
Bajaj Finance reported a 52 per cent rise in its net profit at Rs.164 crore for the fourth quarter ended March 31, 2013, boosted by sound growth in disbursements and core income growth. Net income stood at Rs.108 crore. Total income has risen by 35 per cent to Rs.843 crore from Rs.623 crore. Net interest income (NII) grew 33 per cent to Rs.517 crore from Rs.389 crore.
For the 12 months ended March 31, 2013, the net profit rose 46 per cent to Rs.591 crore from Rs.406 crore in 2011-12. Total deployment increased 23 per cent to Rs.19,367 crore from Rs.15,797 crore.
Adani Ports
Adani Ports & SEZ Ltd., has reported a 49 per cent growth in its net profit at Rs.1,754 crore for the year ended March 31, 2013, against Rs.1,177 crore in the previous year.
Total income rose by 41 per cent to Rs.3,564 crore from Rs.2,522 crore.
The cargo handled stood at 82.13 million metric tonnes for the year, up 21 per cent over a year ago.
On a consolidated basis, total income rose by 40 per cent to Rs.3,841 crore the net profit, excluding Abbot Point, increased by 44 per cent to Rs.1,608 crore.
The board has recommended a dividend of Re.1 per share.
“We had a very robust growth on all fronts and improved margins during the year. Our focus on continuously improved service levels, end-to-end process efficiencies and innovative customised solutions has made us a preferred port for our diversified customers. We will maintain our leadership position and create substantial stakeholders value,” B. Ravi, Chief Financial Officer, said.
“Disinvestment of the port at Abbot Point, Australia, will further give fillip to Adani Ports’ growth plans,” Gautam Adani, Chairman, said.
“The independent valuation of Abbot Point investment as per the instructions of the independent directors has been done. Though the valuation was at a price below the investment value, the promoters have accepted to pay the full investment value of Australian $235.71 million,” the company said in a statement.
“The divestment of investments results in to a gain of Rs.70 crore on a standalone basis; and on a consolidated basis a gain of Rs.420 crore. The accounts of Abbot Point have not been consolidated with the company,” the statement added.
