Maharashtra Scooters (MAHSCOOTER) Q4 99/00 earnings summary

Executive summary

• FY00 sales and other income rose 5.73% to Rs3,394m; profit after tax reached Rs251m, including a substantial one-time booking-interest provision reversal.

• Scooter market conditions were weak, with industry demand down ~9%; production fell 8.55%, while market share was maintained at ~12%.

Financial highlights

• Sales and other income were Rs3,393.6m vs Rs3,209.8m in FY99; other income rose to Rs281.9m from Rs130.4m.

• Profit before tax was Rs328.7m vs Rs232.1m; tax provision was Rs78m vs Rs61m; profit after tax was Rs250.7m vs Rs171.1m.

• Gross profit before interest and depreciation was Rs350m vs Rs247m; retained earnings were Rs207m vs Rs146m.

• Interim dividend of Rs2/share, or 20%, was treated as the final FY00 dividend; no additional final dividend was recommended.

Segment performance

• Scooter production was 140,530 units vs 153,662; sales were 146,673 vs 152,595. Market share remained ~12% of the Indian scooter market, excluding scooterettes.

• Scooter turnover was Rs3,091.3m; turnover from other items was Rs20.5m.

• After-sales service and customer-focused sales promotions continued under Bajaj Auto’s guidance.