Profit of Bajaj Auto Goes Up Beyond 100%

The growth in the company’s consolidated net profit is attributed to a vigorous growth in sales and a sales tax gain of Rs.827 Crore.

Automobile sales increase from 28.53 lakh units to 38.24 lakh units – a growth of about 34 per cent. Expots rose from 8.91 lakh units to 12.04 lakh units – a growth of about 35 per cent. In monetary terms, the exports rose from Rs. Rs.3246 crore to Rs.4552 crore – rise of about 40 per cent.

Kevin D’sa, President (Finance) of Bajaj Auto said: “We have a sales tax benefit, which is a deferred loan, of about Rs.1200 crore, which we have prepaid t a discounted rate of 11.4 per cent, thereby generating a surplus of about Rs.827 crore.”

The surplus cash and equivalent of cash rose from Rs.3,263 crore as on 31st March 2010 to Rs.4,239 crore as on 31st Mrch 2011.

The Board of Directors of Bajaj Auto have proposed a dividend of Rs.40 per share on the share capital which has increased consequent upon the issue of bonus shares in 1:1 ratio. The amount so disbursed by way of dividend would be to the tune of Rs.1345 Crore.

Rajiv Bajaj, Managing Director, Bajaj Auto said: “Input cot pressure is expected to continue, but with reasonable certainty, we can say that the worst is behind us.”

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