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Bajaj Auto Emerges As World’s Most Profitable Auto Company

Bajaj Auto Limited has come out to be World’s most profitable Automobile Manufacturer of World! Bajaj Auto is India’s number two two wheeler makers and World’s Number 3, has posted a turnover of Rs. 20,000 Crore for FY 2011-12 with Operating Earnings before taxes and interest coming out to be 4,000 Crores which is about 20.2% and best in the automobile industry around the World. We recently has a conversation with Mr. Rajeev Bajaj, the MD of Bajaj Auto at the launch of their latest Sports Tourer Baja Discover 125 ST, where he expressed his vision for the Bajaj Auto India. He said that we see the two wheeler market with just two kind of customers, one who want sporty motorcycles and others who want economical commuter motorcycles and we focus our efforts and energies to excel in these two segments. The vision and direction seems to be working well for Bajaj Auto with its well targeted offering which have good market share in their respective segments.

Bajaj Auto Limited India

Bajaj Auto has been awarded prestigious title of  “Company of the year” at the Economic Times Award 2010-11. The operating profit margins of the company are 19.4% which is almost double of any other automobile company in India. Bajaj Auto sold over 3.8 Million (38 Lakh) Motorcycles worldwide in the last fiscal. Bajaj Auto exports over 36% of its total production which also makes it the largest exporter from India in terms of the percentage of the production exported. Its export products are sent to 35 countries out of which it has a leading position in 12 of these countries. The exports of Bajaj Auto grew about 40% in the past fiscal.

After posting good financial results in the past fiscal, Bajaj Auto Limited Board of Directors have recommended a dividend of Rs. 45 per share which is 450% of the face value of Rs. 10 per share. This will amount to Rs. 1513 crore in Dividends and taxes on these dividends which is higher than the previous fiscal’s dividend of Rs. 40 (400% of face value which amounted to Rs. 1345 Crore). We will keep you posted on the updates from Bajaj Auto India, stay tuned to us for more details.