Changeover to BS-IV compliant vehicles and transition to the Goods & Services Tax (GST) regime dragged down the standalone sales income and net profit of Bajaj Auto Ltd. by 5% in the first quarter of this financial year, the company said.
Bajaj Auto on Thursday reported standalone gross sales income of ₹5,740 crore as against ₹5,984 crore in the same period of the previous year. The company’s net profit fell 5.62% to ₹924 crore as against ₹978 crore in the same period last year.
On a consolidated basis, the company’s net profit was down by 19.51% at ₹837 crore as against ₹1,040 crore reported in the same period last year.
Consolidated total income fell 3% to ₹6,178 crore.
‘Vehicle sales decline’
Total vehicles sales fell 10.68% during the quarter were 8,88,434 units as compared with 9,94,733 units sold in the same period the previous year.
In the international business, sales volume rose 10% to 4,09,525 units. As on June 30, surplus cash and cash equivalents stood at ₹13,256 crore as against ₹12,368 crore in March.
The company said that passing on the benefit of the lower tax rate to customers has “resulted in reduction in ex-showroom price of ₹200 to ₹6,500 per motorcycle.” The company has also provided ₹32 crore towards compensation to dealers for transition to GST, it said in a statement.
