Bajaj Auto has reported a higher net profit of Rs. 711 crore for the first quarter ended June 30, 2011 against Rs. 590 crore in the corresponding period ended June 30, 2010 despite increase in the cost of raw materials and components. Material as a percentage to operating income, rose from 71.2 per cent to 72.6 per cent. Despite these inflationary pressures, higher volumes and focus on high-end motorcycles enabled the company to achieve higher profit margins of 19.1 per cent.
Net sales have risen to Rs. 4,587 crore from Rs. 3,890 crore. Sales of vehicles have crossed the one million mark to 1.09 million from 9.28 lakh. Sales of motor cycles have gone up to 9.63 lakh from 8.28 lakh and commercial vehicles to 1.30 lakh from 99,918. Exports have also improved to 4.27 lakh units from 3.24 lakh units. According to a release, Pulsar sales averaged 75,000 numbers, Discover 1.35 lakh numbers a month. The company sold 1 lakh Discover 125 in the first quarter.