CHENNAI: The net profit of Bajaj Auto for the year ended March 31, 2010, has spurted to Rs. 1,594.60 crore from Rs. 535.79 crore in 2008-09. Total income has risen to Rs. 11,974.15 crore from Rs. 8,814.81 crore. The directors have recommended a dividend of Rs. 40 per share against Rs. 22 per share.
According to a release, richer product mix, higher volumes resulting in leveraging of fixed cost, effective cost management and focussed sales promotional activities enabled the company to achieve a growth of 21.7 per cent in gross margins. Strong operating margins together with efficient working capital management has resulted in surplus cash and cash equivalent of Rs. 3,263 crore as on March 31, 2010, against Rs. 933 crore as on March 31, 2009. Sales of two-wheelers have risen to 25.12 lakh from 19.20 lakh and three-wheelers to 3.41 lakhs from 2.75 lakh. The company registered a 23 per cent rise in higher exports at Rs. 3,246 crore.