Date:23/05/2008 URL: http://www.thehindu.com/2008/05/23/stories/2008052355721500.htm

Business

Bajaj Auto Q4 net at Rs. 121 crore

Special Correspondent

Board recommends Rs. 20 per share

To launch KTM, Kawasaki bikes
this year
Bajaj Holdings
pays Rs. 20
per share

MUMBAI: Bajaj Auto Ltd. (BAL) has reported a net profit of Rs. 120.67 crore in the fourth quarter ended March 31, 2008, on sales of Rs. 2,275.87 crore.

Bajaj Holdings & Investments Ltd. (BHIL), the erstwhile Bajaj Auto was demerged last year and became effective in February this year and as such the previous year’s results are not strictly comparable.

The manufacturing undertaking was transferred to the new BAL and its strategic business undertaking consisting of wind farm and financial services business has been vested in Bajaj Finserv Ltd. (BFS). All the businesses and properties, assets, investments and liabilities of erstwhile BAL, other than the manufacturing undertaking, strategic business undertaking and part of the investments transferred to BAL and BFS remain vested with BHIL.

For the year 2007-08, BAL reported a net profit of Rs. 756 crore on a turnover of Rs. 9,168.80 crore. The gross profit was Rs. 1,411.10 crore. The board has recommended a dividend of Rs. 20 per share (200 per cent).

During the year, the company sold 10 per cent less motorcycles, two-wheelers and three-wheelers at 21.39 lakh units, 21.61 lakh units and 2.90 lakh units respectively with exports registering a smart 40 per cent growth at 6.18 lakh units.

Addressing the media, Rajiv Bajaj, Managing Director, BAL, said, the company’s focus would be “singularly on motorcycles and that too the higher power ones. We are not developing any 100 cc bikes or expanding their capacity.”

BAL has acquired 24.45 per cent in KTM Power Sports AG with a total investment of 98.36 million euro (Rs. 568 crore). KTM is the second largest European motorcycle maker

“We are open to go up to 30 per cent stake in the company but not above that,” BAL expects to launch the KTM and Kawasaki bikes this year

Bajaj Holdings & Investment (BHIL) reported a net profit of Rs. 307 crore on an income of Rs. 355.30 crore. The board of the company has recommended a dividend of Rs. 20 per share.

Bajaj Finserve

Bajaj Finserve reported consolidated revenues of Rs. 12,230 crore and a loss of Rs. 32.70 crore.The board of the company has recommended a dividend of Re. 1 per share (20 per cent).