Boosted by export gains, country’s one of the biggest two wheeler maker Bajaj Auto ltd, registered an increase of 13 per cent in its net profit for the second quarter. During the July- September quarter, company’s net profit rose to Rs 837.16 crore from Rs 740.67 crore in the same quarter last year. Company’s net sales rose by 5.07 per cent to Rs 5,061.49 crore as compared to Rs 4,817.07 crore during Q2 FY13.
While the company saw a decline on volume front, the company performed on the back export gains due to the rupee depreciation. Volumes fell by 8.37 per cent to 9,61,330 units during Q2 FY14 against 10,49,208 units in year-ago period.
Commenting on the profit growth despite decline in volume sales, company in its statement said, “Over the last five years, strategic initiatives taken to enter into difficult markets, like Africa, is yielding rich dividends. The benefits are now further enhanced with the depreciating rupee.”
Company’s international business contributed 40 per cent of the total revenues as export revenue during the quarter rose by 26 per cent to Rs 2,125 crore as against Rs 1,686 crore in the same period last fiscal.
As per the official statement, the company has registered its highest export revenue in Q2 FY14.
Company’s focus on high margin products has also helped in improving the performance. “75 per cent of total revenue of Bajaj Auto is generated by business verticals which operate on EBITDA margins in excess of 20 per cent.” During the current quarter, the company also reported its highest operating EBITDA of 23.1 per cent as compared to 21.3 per cent in Q2 FY13.
The company along with its quarterly numbers also issued the half yearly performance. In the first half of the current fiscal (H1 FY14), turnover grew by 2 per cent to Rs 10,386 crore as against Rs 10,187 crore in the first half of last year. Profit after tax (PAT) for H1 FY 14 also jumped by 8 per cent to Rs 1,575 crorse from Rs 1,459 crore.
Export revenue for the half year stood at Rs 4,000 crore as compared to Rs 3,396 crore in the same period last fiscal, up 18 per cent. Unit volume sales were, however, down by 9 per cent to 19,40,605 units during the period as compared to 21,28,179 units in the year-ago period.