Bajaj Auto Net Profit Up 13.5% Propped By Other Income

Bjaj Auto has posted a 13.5 per cent jump in net profit to Rs 613.73 croe in the 1999-00 fiscal, aided by a hefty increase in other income and change in accounting policy. Sales during the period rose by a mere 4.6 per cent to Rs 405.06 crore. Explaining the increase in other income. Sanjiv Bajaj, general manager (corporate finance) Said: "We have capitalised on teh sharp upturn in the capital markets by selling some of our investments and booking large profits. "The company has an investment portfolio of over Rs 2,500 crore, and has been considering hiving it off to a separate asset management company, provided the tax sops available to mutual funds are also extended to it. The company, in order to comply with the revised accounting standard for valuation of inventories, has changed the method of valuation, which has resulted in the profit after tax being higher by 14.23 crore. The board has recommended the interim dividend of 10 per cent be considered the final dividend. During the year, the company's scooterettes recorded a significant 44.6 per cent growth, while that of motorcycles jumped by 27.5 per cent. Scooter sales slumped 8.8 per cent, while sales of three wheelers also experienced a 5.2 per cent drop. As part of its top management reshuffle, president Madhur Bajaj has been leveated to the position of executive director, while vice-president (products), Rajiv Bajaj, is now the new president.