Bajaj profit slides on lower sales; company won’t chase volumes (Live mint.com 31th Jan 2008)India’s second largest seller of two-wheelers, Bajaj Auto Ltd, had a third quarter profit decline of 16.6% from the year-ago period as it sold fewer bikes because customers deferred purchases as borrowing-to-buy became expensive.
The bike maker also incurred a one-time charge of Rs51 crore because it offered a voluntary retirement payout to workers at one of the units that wasn’t productive.
The Pune-based company made a profit of only Rs273.8 crore in the three months ended 31 December, compared with Rs328.3 crore in the year-ago period. Sales at Bajaj Auto dropped 2.3%, to Rs2,633.3 crore, in the quarter—lower than Rs2,696 crore last year. The results were worse than a Mint poll of five analysts, who estimated net profit at Rs354.66 crore and revenues at Rs2,653.88 crore. More
The bike maker also incurred a one-time charge of Rs51 crore because it offered a voluntary retirement payout to workers at one of the units that wasn’t productive.
The Pune-based company made a profit of only Rs273.8 crore in the three months ended 31 December, compared with Rs328.3 crore in the year-ago period. Sales at Bajaj Auto dropped 2.3%, to Rs2,633.3 crore, in the quarter—lower than Rs2,696 crore last year. The results were worse than a Mint poll of five analysts, who estimated net profit at Rs354.66 crore and revenues at Rs2,653.88 crore. More
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