Mumbai: India’s second-biggest motorcycle maker, Bajaj Auto Ltd,said on 12 July its quarterly net profit fell 18% on high commodity prices and fierce competition in the world’s biggest market after China.
Bajaj, which also makes scooters and dominates the market for three-wheeled motorised rickshaws, said net profit fell to Rs226 crore in the first quarter of FY08 ended 30 June, from Rs276 crore a year earlier.
A Reuters poll of 10 analysts had forecast an 8% fall in quarterly net profit to Rs255 crore.
Bajaj said in May it would split its manufacturing and finance operations, which analysts said would allow a better comparison with peers and improve financial ratios.
Shares of Bajaj Auto fell 12% in the April-June 2007 quarter, compared with a 2.7% decline in the auto sector share index and a 12% gain in the Sensex.