Bajaj Auto Results: Financial Year 2007-08

May 24, 2008 - PRLog -- from http://auto-part-manufacturer.net  ----auto industry news,cool car pics,auto part manufacturers


A meeting of the Board of Directors of Bajaj Auto Limited was held today to consider and
approve the results for the financial year 2007-08.

This is the first financial year of the company post demerger. Hence the previous year’s
financial figures have not been given.



1.  FINANCIALS

The summary of audited results of Bajaj Auto is as under:

Rs. in million  FY 2007-08

Turnover (net of excise)  91,688
Gross Profit after interest but before VRS,
depreciation and taxation  14,111
Extra ordinary items :
Compensation under VRS  1,024

Depreciation  1,740

Profit before taxation  11,347
Provision for taxation
(including deferred tax)   3,788

Net profit for the year  7,559

Earnings per share (Rs.)  54.2



2.  DIVIDEND

The Board of Directors recommended a dividend of Rs. 20 per share (200%). The total
amount of dividend and tax thereon amounted to Rs.  3,385 million.
3.  TURNOVER, MARGINS & PROFITS AFTER TAX

(a)  Turnover for the year - Rs. 91.69 billion.

(b)  Operating EBITDA – Rs 12.94 billion. Operating EBITDA margin – 14.3%.

(c)  Profit before tax Rs 11.35 billion.  

(d)  Net Profit after tax Rs. 7.56 billion.



4.  SALES

SALES (Nos.)
 2007-08  2006-07  Change (%)
Motorcycles  2,139,779  2,379,499  -10
2-Wheelers  2,161,095  2,399,996  -10
3-Wheelers  290,312  321,828  -10
Total  2,451,407  2,721,824  -10
Exports
(out of the above)  618,341  442,411  40

Motorcycles

(a)  Motorcycle industry sales declined by 8% in 2007-08.

(b)  The  shift  from  100cc  segment  to  125cc  plus  segment  continues.                    
The “125cc plus” segment constitutes 36% of market as against 31% during last
year.

(c)  The  company  continued  its  focus  on  the  profitable  “125cc  plus”  segment –
growth of 23% V/s industry growth of 7%.

(d)  As a result, the company’s market share in “125cc plus” segment is close to
50%.

(e)  The growth in ”125cc plus” segment was attributable to new launches during the
year – XCD 125 DTS-Si, Discover 135 DTS-i, Pulsar 200 DTS-i and Pulsar 220
DTS–Fi.

(f)  The growth in 125cc plus segment has, however, been offset by the decline in
its 100cc portfolio.
(g)  Hence the company’s overall motorcycle market share marginally reduced from
33.5% in 2006-07 to 32.7% in 2007-08.


 3



3-Wheelers

(a)  The sales continued to reflect the overall slow market conditions.

(b)  The company continues its dominance in the 3-wheeler market. The market
share in passenger carrier segment stands at 71.5% in 2007-08.

(c)  Over 47% of three wheelers were exported during the year.



Exports

(a) Bajaj Auto continues to be the ‘NUMBER ONE’ exporter of 2&3-wheelers.

(b) Exports in volumes and value are tabulated in the table given below:

 2007-08  2006-07 Change (%)
Total 2-Wheelers  482,026  301,766  60
Total 3-Wheelers  136,315  140,645  -3
Grand Total  618,341  442,411  40
Value
Rs. in million  20,478  16,944  21

(c) The company achieved a record sale of 482,026 units of 2 wheelers.

(d) In Srilanka, Bangladesh and Colombia Bajaj bikes strengthened its Leadership
position

(e) In Nigeria, Boxer is the most visible two wheeler brand in the city of Lagos.

5.  ASSOCIATES, SUBSIDIARIES & JOINT VENTURES


Bajaj Auto International Holdings BV.

(a) The company has a wholly owned subsidiary - Bajaj Auto International Holdings
BV based in Netherlands.

(b) Through  this  company,  Bajaj  Auto  Limited  has  acquired  as  on  date  24.45%
equity  in  KTM  Power  Sports  AG  with  a  total  investment  of   98.36  million      
(Rs. 5.68 billion).

(c) KTM is the second largest European motorcycle maker and a worldwide leading
manufacturer of power sports vehicles.


PT. Bajaj Auto Indonesia

(a) PT.  Bajaj  Auto  Indonesia  was  incorporated  in  2006-07  as  a  subsidiary  in
Indonesia with an issued, subscribed and paid-up capital of US$ 12.5 million        
(Rs.562 million). Bajaj Auto holds 97.5% shares in the company.

(b) The company assembles and markets Pulsars in Indonesia. During 2007-08,
variants of the Pulsar were launched, and an exclusive dealer network has been
put in place which gives the company reach into the key markets of Jakarta,
Java, Sumatra, Bali and Sulawesi.









Rajiv Bajaj                      
Managing Director







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