Despite a downturn in the automobile industry, Bajaj Auto Ltd. reported 15% growth in net profit at ₹1,262 crore for the third quarter ended December 31, 2019, compared with ₹1,102 crore in the same period last year.
During the period, the company’s turnover increased by 2% to ₹8,006 crore as compared to ₹7,849 crore in the same period last year. The company achieved a total sales volume of 1,202,486 units as compared to 1,259,828 units, down 5%. Export volumes at 562,772 units were up 7% and are at the highest level ever.
The domestic motorcycle industry recorded a decline of 14% over Q3 of FY19 and the performance of Bajaj Auto was in line with the industry. In Q3 of FY20, the company recorded a share of 20%.
In commercial vehicles, the company continued to be a leader in the domestic market. It sold over 96,000 units in Q3 of FY20 and recorded a market share of 57%. RE brand reported market share at 89%, while the MAXIMA reported a market share at 38%.
In the international business, the company recorded its highest ever quarterly volumes of 562,772 units in Q3 of FY20, a growth of 7% over Q3 of FY19. This division now contributes 43% of the net sales. Motorcycle sales grew by 11% over Q3 of FY19 to over 484,000 units.
Africa, driven by Nigeria, Congo, Uganda and Ethiopia, recorded a growth of 15% over Q3 of FY19. The relative slowdown in Bangladesh was compensated by growth in Sri Lanka and Egypt, the company said. Latin America region recorded a growth of 37% over Q3 of FY19.
Commercial vehicles, excluding Egypt, grew by 26%, to over 78,000 units. In value terms, exports in US$ was 426 million. Realization per US$ was ₹71.3 in Q3 of FY20 as against ₹70.6 in Q2 of FY20 and ₹68.5 in FY19.
In a new development, Rahul Bajaj, executive chairman, who has decided not to continue as whole-time director of the company due to certain commitments and other pre-occupation after the expiry of his current term on March 31, 2020, will move to a non-executive role.
The Board of Directors of Bajaj Auto Ltd., at its meeting held on Thursday and as recommended by the Nomination and Remuneration Committee, approved the appointment of Rahul Bajaj as non-executive director, with the designation continuing as chairman of the company with effect from April 1, 2020. This is subject to approval of the shareholders.
“Since Shri Rahul Bajaj has already attained the age of 75 years, approval of shareholders will be taken by special resolution by way of postal ballot for his appointment as Non-executive Chairman as required by SEBI Regulations, 2015,” the company said.
Published - January 30, 2020 10:17 pm IST
