Bajaj Auto’s Net Profit up by 40 %
Bajaj Auto Limited has posted a net profit of Rupees 6671.10 mn for the quarter ended 31 st December 2010 as compared to Rs. 4751.40 mn for the quarter ended 31st December 2009. Total Income has increased from rupees 33306.80 mn for the quarter ended December 31, 2009 to Rs. 42765.40 mn for the quarter ended 31st December 2010. EBITDA margin for the quarter stood at 20.3% margins continue to be the highest in the industry. Annualised EPS for 9M / 2010-11 Rupees 89.3 as against Rupees 58.8 for 2009-10. ROCE (operating) at 223 percent. The quarter witnessed an all round growth in input cost. In this demanding environment, the company's focus on high-end motorcycles enabled it to maintain record high margins in excess of 20 percent.
Pulsar recorded its maximum sales, 262,000 vehicless; maintaining its dominance in the sports segment market share of 50 percent. Discover sold -327,000 vehicles during the quarter. The high-end motorcycles now contribute over 70% of company's total motorcycle sales. Overall, market share was 31% in Q3 / FY11. Demand for commercial vehicles, especially exports, continues to be tough. Now the company is facing capacity constraints in its four stroke range of products. Demand from overseas marketplace is robust. Bajaj Auto's targets record exports of US $1bn for the year. As on 31st December 2009, cash and cash equivalents stood at rupees 38.21bn as against Rs. 32.63bn as on 31st March 2010. Company is positive of achieving EBITDA margins of 20% for the year.
Bajaj fails to sell 4 million bikes in 2010-11
Bajaj Pulsar 250cc might soon
A big sibling in Bajaj Pulsar series might be added very Soon. Honda cbr250r which is the recent sensation in bikes is getting great answer with bookings. Now Bajaj Auto, too, is getting ready to enter in the 250cc bike section and reported to launch 250cc+ key model of its Pulsar series. It is expected that the Bajaj Pulsar 250+ might be launched in the end of this year.
At present, Bajaj Pulsar 220 and Hero Honda Karizma are the most well-liked entry-level sports bikes in India in the affordable price range and performance. The Kawasaki ninja 250r is the high-end top entry-level sports model but it's price is more than other similar bikes in India while Honda CBR 250R is available almost formers half price tag. Bajaj Auto which is the India's second largest two wheeler marker can't be behind in this competition and might launch a big sibling of its most popular bike series Bajaj Pulsar while its Bajaj Pulsar 135 is doing well in the market. Other key players such as Hero Honda, TVS also might come with high cc engine bikes. The Bajaj Pulsar lovers can stay for this big bike that might be launched by the end of this year.
Bajaj Conducts Raids To Prevent Piracy
Bajaj Auto has started a campaign against piracy in the country. The Police have conducted raids on few automobile spare parts shops in Balaram Street, Mumbai, which were
packing & selling counterfeit parts of Bajaj spare parts packed in non-genuine packing. These criminal actions not only infringe ‘Bajaj brand ‘ affecting brands credibility, but also cheat the customer who gets a substandard part, which when fitted in vehicle will not give proper service, besides possibly creating safety issues.
The government also loses precious revenue in terms of taxes.In order to contain this social menace, Bajaj Auto has initiated action against such counterfeiters and following shops in Balaram Street, Mumbai were raided with the help of EIPR Mumbai and Mumbai Police and the named persons were arrested.
1) M/s. Satkar Automobile (Mr. Sarvinder Sarvansingh)
2) M/s. Perfect Scooters (Mr. Sarbajit Santuksingh)
Bajaj planning more powerful Ninjas in India
With the increasing sales growth of sports bikes in the country, the second largest bike manufacturer is making itself ready to release some more Ninja models or may also bring something absolutely new and exclusive to its customers. Bajaj Motors recently reported a total sale of 1000 vehicles within a year of its release of which 100 units alone were sold in the state of Andhra Pradesh. Also the company is doing well enough with its Bajaj Pulsar and Bajaj Discover which are marked to be the favourite of Indian customers.
As per the statements of head of sales department, Bajaj Motors, it is known that the company is currently working on some more variants of Ninja and this time it is expected to come up with a Ninja having an engine capacity of 0.6 ltr. New bikes from the famous Bajaj is expected to come tagged with Rs 12 to 13 lakh. The company has Kawasaki Ninja 250R in India which is getting overwhelming response from the bike lovers.
Indian market being price conscious is experiencing good sales with sports bike segment. Also this is forcing the other foreign companies to enter the market with their sports segment bikes. Bajaj Motors is flourishing well and is the most trusted of Indian customers with its advanced and exclusively featured products that are efficient enough to generate high power.
Bajaj Produces One lakh Units in a Month
Bajaj, one of the fastest growing manufacturers, has left the motorcycle industry awestruck. It has produced a record no of 1,00,000 vehicles in just a month at the Pantnagar plant. Bajaj has definitely added another feather in its cap by achieving this remarkable production level. A company official said that the production at Pantnagar plant was almost double than compared to the other plants of the company.
Bajaj India is looking to improve the level of production facility at Pantnagar by investing another 75 crores. When asked to the officials about the expansion program they said that the program is already underway and will complete as soon as January 2011. Due to boom in the motorcycle market, Bajaj is planning to ramp up its production level from 1.2 million units per annum to 1.8 million units per annum. As per the company reports the expansion was due to be completed in October 2010 itself but it could not be so done because of heavy rains.
Even last year Bajaj carried out similar expansion plans wherein they scaled the production from six to twelve lakhs p.a. Officials also said that the possibilities of introducing new models always remain given the expansion plan works out just fine. The company is currently producing two of its variants from the Pantnagar plant viz. Platina and Discover. Bajaj started the production in 2007 at Pantnagar and availed tax rebated available to the industries operating in SEZ. The company had initially invested 230 crores at Pantnagar facility and thus they are keen to utilize the facility to 100% level. We can only wish Bajaj all the very best. If they go at the same pace, soon there will be no place for other competitors on Indian roads unless others come up with something unique.
[Via: Bikes India]
Bajaj Auto Plans Distribution Expansion
Bajaj manufacturers plans massive distribution expansion in Indian market. Bajaj India plans on adding one hundered thirty new dealerships and upgrading 1,100 service centers by the end of 2011. The new dealers, largely in small towns, would take the total number to more than six hundered dealerships across India. The company has great reach of Bajaj Pulsar across the country but the same cannot be said with the Bajaj Discover which has huge potential in semi-urban towns.
Bajaj India is also working with a reputed international retail design agency to enhance the experience of consumers at its dealerships. A typical Bajaj dealership in these towns requires 1800 sq ft. of showroom space, 2200 sq ft. of workshop space, and has the direct employment potential of approx fifty people which can significantly boost the local economy by creating 7,000 new jobs.
Bajaj Auto Arm Raises KTM Stake
Netherlan based, wholly owned subsidy of Bajaj Bikes, named as Bajaj International Holdings (BAIHBV) has recently raised its stake in KTM Power Sports. This step by Bajaj, will help the company to keep a strong hold on the Europe's 2nd largest power sports bike producer.
Bajaj Auto is India's second largest bike manufacturer and on Tuesday it purchased a total of 2.44 lakh worth shares in KTM. This deal of the Bajaj India has raised its share to astonishing 38.09% from the earlier recorded 35.7 percent. It was this April when the company previous raised its share from 31.9 percent to 35.7 percent. And now finally company stands at the position of 38.09 percent stake in Europe's top sport bike manufacturing company.
With these figures it is clear that Bajaj auto is raising its stakes in KTM at a steady rate and the company is able to increase its grip on KTM operations with time. As compared to today's value, the Bajaj was at a low point of 14.5 percent stake in 2007 but with time the company has effectively raised its stake in KTM. On the occasion, S Ravikumar, Senior VP Business Development & Assurance, Bajaj Auto said, “The driving force in KTM India has been the brand fit and the non-over-lapping strategy,” In terms of KTM shreholders listing. Bajaj stands at the second position with a share of 38.9 percent. In KTM, the largest shareholder is Stefan Pierer and Rudolf Knuenz hold with a pie of 51 percent. this makes it clear that Indian major is not much far from the top shareholder of KTM.
Bajaj and KTM have maintained real cordial relationship on joint projects. The 1st ever product made by them as a pair is KTM Duke 125 and it will hit the European markets by 2011. The Australian manufacturer has shown interest in manufacturing the entry level bike also with Bajaj for European markets. KTM Duke will be launched in Indian markets in the second half of next year.
Bajaj Plans Entry Level 100cc Bike For India in 2011
Bajaj India, which had returned to the 100cc segment previous July, is planning a new 100cc bike with a sub Rs 40,000 price tag. This information was recently revealed by its suppliers to Dow Jones. They also mentioned that Bajaj Bike is specifically designed to go head to head with current market leader, Hero Honda’s Splendor.
Bajaj currently sells 10 bikes but only 2 of them (Discover and Platina) are available in 100 cc category. The new bike is a result of Bajaj selling over 1 million units of Discover 100cc from July 2009 till the date.
Bajaj Auto To Hike Production Capacity
Bajaj India plans to increase its overall production capacity to fifty lakh units a year by the end of this fiscal. The company has three manufacturing plants at Waluj and Chakan in Maharashtra and Pantnagar in Uttarakhand which produces a total of foury six lakh units of 2 and 3-wheelers every year. Earlier in october, the company commissioned Plant II at their Pantnagar facility taking the capacity to fifteen lakh units of motorcycles per year from 12 lakhs. By 31st March 2011, total capacity at the plant will reach 18 lakh units per annum. Motorcycle capacity at Waluj will remain the same and there will not be any capacity hike at the Chakan plant, which has can produce 12 lakh units a year.
This year Bajaj Auto had earmarked between Rs. 150 crore and Rs. 200 crore for capex, including capacity expansion, research and development, modernisation, replacement and support systems. In the beginning of the year Bajaj had stated that they will be advertising a total of four million 2 and 3 wheelers. Bajaj Bikes has been breaking sales record. The Last best was achieved in the preceding quarter of this fiscal. Of total bike sold by Bajaj, 86 percent is from high end Pulsar and Discover motorcycles.