Bajaj sales flat in Q1, unrest in Egypt affects 3-wheeler sales

July 18, 2012: Bajaj Auto’s net sales were flat at Rs 4,714 crore in April-June 2012 versus Rs 4,535 crore in April-June 2011. Net profits too were flat at Rs 718.39 crore as compared to Rs 711.06 crore in April-June 2011. Profits would have been lower but for ‘other income’ component at Rs 181.97 crore in April-June 2012 as compared to Rs 144.09 crore in June 2011.

The company sold 1,078,971 units in April-June 2012, marginally lower than the 1,092,815 units in April-June 2011. In the domestic market, it sold 618,489 units in Q1 of 2012 as compared to 623,175 units in June 2011. Segment-wise, while the deluxe segment fell 16 percent, the entry-level increased 34 percent. Domestic sales of its commercial vehicles (3-wheelers) rose six percent to 44,837 units as against 42,276 units in the year-earlier period.

In the export market, motorcycles accounted for 364,134 units for the quarter as against 339,876 units, up seven percent. CV sales fell 41 percent to 51,511 units as against 87,488 units. Sales of 25,000 CVs were affected. Duty hikes in Sri Lanka and political unrest in Egypt resulted in exports of CVs falling. The company hopes to normalise the situation by the second quarter. Sales of 20,000 units in Sri Lanka were affected.

Bajaj Auto plans a pan-India launch of the Pulsar 200 NS shortly. With Honda launching its Dream Yuga in the entry segment and Hero MotoCorp launching the Ignitor in the deluxe segment, there will be strong competition. Much will depend on the monsoons and this will impact sales during the festive season.