Bajaj Auto net slips 13.2 percent

May 21st, 2009 - 5:32 pm ICT by IANS  

Mumbai, May 21 (IANS) The country’s second largest two-wheeler maker, Bajaj Auto, Thursday reported a 13.2-percent decline in net profit for 2008-09 while managing a 7.8 percent increase in fourth quarter profitability.
The company, with a product line-up that includes commercial three-wheeler vehicles, reported a profit of Rs.654.5 crore in 2008-09, down from Rs.755.7 crore earned the previous fiscal.

The turnover, after excise, took a beating of 2.6 percent with net sales slipping to Rs.9,436.9 crore from Rs.8,663.3 crore in 2007-08.

Unit sales during the year - which was particularly tough for the auto industry - fell by over 250,000 units to 2,194,154.

The only silver lining was the resurrection of the export business in developing markets that include South America. This accounted for a 31 percent surge in two-wheeler sales in these countries.

In a statement, managing director Rajiv Bajaj said lower raw material costs and better exports would drive growth in the current fiscal.

Bajaj Auto declared a dividend of Rs.22 per share.

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