Bajaj Auto Ltd. (BAL), on Wednesday, reported a 13 per cent growth in net profit for the second quarter of 2013-14 at Rs. 837 crore. The profit was buoyed by higher exports, which account for 40 per cent of revenues. Although BAL’s turnover rose 3 per cent to Rs. 5,299 crore, export revenue rose smartly 26 per cent to a highest ever Rs. 2,125 crore. According to a company statement, “over the last five years, strategic initiatives to enter into difficult markets, like Africa, are yielding rich dividends. The benefits are now further enhanced with the depreciating rupee.”
During the quarter, the company’s sales were 8 per cent lower at 961,330 units but it reported a record operating profit of Rs. 1,204 crore, which was up 29 per cent and an operating margin of 23.1 per cent (18.7 per cent).
The export performance helped the company off-set the decline in volumes in the domestic market. For the half-year ended September 2013, BAL’s net profit was up 8 per cent at Rs. 1,575 crore on a 2 per cent higher turnover of Rs. 10,386 crore. During the period, sales were down 9 per cent at 19,40,605 units.
