Two-Wheeler Boom

Two-Wheeler Boom BAJAJ AUTO has shown impressive performance during 1985-86 with substantial increases in production, sales and profits. What is more, the company has planned further expansion to achieve sustained growth in the future. The company produced 3,87,592 scooters against 2,61,111 numbers last year, out of which CKD packs were 75,550 numbers against 58,450 numbers. Similarly, motorcycle production was 42,732 numbers against 30,644 numbers, of which CKD packs were 2,518 numbers against 360 numbers. While the turnover amounted to Rs 353.39 crore against Rs 226.28 crore, gross profit surged ahead from Rs 47.50 crore to Rs 84.83 crore reflecting a jump in profit margins. Although provisions for both depreciation and taxation claimed much more, net profit advanced from Rs 28.63 crore to Rs 38.97 crore. Dividend has been stepped up from 30 per cent to 50 per cent and enjoys a hefty earnings cover of 8.21 times against 10.15 times previously. The company exported 3,244 scooters and 3,005 three-wheelers (including 2,518 CKD packs) and earned foreign exchange equivalent to Rs 6.29 crore as against Rs 2.23 crore previously. It sold 1,03,863 Bajaj-Chetak scooters which were booked against inward remittance of foreign exchange. The amount received in foreign exchange against these sales was equivalent to Rs 62.32 crore. The company also received foreign exchange equivalent to Rs 6 lakh as technical know- how fees from it's licensees abroad. Commercial production of scooters at Waluj in Aurangabad district of Maharashtra had commenced in mid-May 1985 and the 1,00,000th scooter was produced there on August 16, 1986. The plant has now achieved a production range of 1.80 lakh scooters per annum. The company's application for automatic growth of its licensed capacity for the manufacture of CKD packs for supply to Maharashtra Scooters was approved and the licensed capacity for such CKD packs was enhanced from 69,700 numbers to 87,000 numbers per annum.