Bajaj Auto net skids on input costs, hedging

Profit of the Pune-based company fell to Rs 175.11 crore in the quarter compared with Rs 183 crore a year earlier. Input costs like auto steel, plastics and rubber impacted the company's margins.  The company reported an unrealised loss of almost Rs 98 crore on forward covers used to hedge future exports.  This was a result of fluctuations in foreign currency against the rupee. RBI's reference rate to the US currency as on April 2 stood at Rs 39.98 per dollar.  Net sales of the company for the reporting period grew by 9.58 per cent at Rs 2,310 crore as compared to Rs 2,108 crore in the same period a year ago. The company had sold 6.20 lakh vehicles, including two and three wheelers, which was an increase of 8 per cent over the same period a year ago.  At the company's annual general meeting today, Bajaj Auto Managing Director Rajiv Bajaj said the memorandum of understanding (MoU) among Bajaj Auto, Nissan and Renault India for manufacturing a low-cost car would be signed this month.  Bajaj Auto was relisted in May after it spilt the manufacturing activity with that of the other business units like financial services among others following a restructuring exercise undertaken last year.  Rahul Bajaj, chairman, Bajaj Auto, said, "Raw material costs have increased, which has impacted the bottom line but we are sure of recovering the loss in the next two quarters."  Net sales of the company for the reporting period grew by 9.58 per cent at Rs 2,310 crore as compared to Rs 2,108 crore posted in the same period a year ago.