Chennai, Oct 18 Two- and three-wheeler major Bajaj Auto Ltd closed the second quarter of FY24 with higher net profit and operational revenue.
The company has also amended its Dividend Distribution Policy whereby dividend will be declared based on the overall payout to the shareholders.
In a regulatory filing, Bajaj Auto said for the quarter ended September 30, 2023, it had earned an operational revenue of Rs 10,777.27 crore (Q2FY23 Rs 10,202.77 crore) and a net profit of Rs 1,836.14 crore (Rs 1,530 crore).
The company said during the quarter under review it has sold 10,50,975 units as against 11,51,012 units sold during the previous year's corresponding period.
Amending its Dividend Distribution Policy, Bajaj Auto said that based on the Profit after Tax (PAT) for the year, and surplus funds available with the company, the Board of Directors shall recommend dividend payout after considering a range of internal and external factors including (i) general economic and market conditions, (ii) funding requirements for expansion, diversification, growth, (iii) funding needs for new projects, brand/business acquisitions, (iv) long-term strategic plans, (v) regulatory changes (vi) investments in subsidiaries/ associates/joint ventures, (vii) absorbing unfavorable market condition (viii) share buybacks (ix) any other contingencies and other circumstances which, in the opinion of the Board, require retention of earnings.
The retained earnings will be used to fund events/situations outlined above, the company said.
According to the Dividend Distribution Policy, the Board shall determine the quantum/extent of dividend taking into account the 'Overall Payout to Shareholders'. For this purpose, the ‘Overall Payout to Shareholders’ shall be defined to mean a combination of dividends, share buybacks or such other route/s including the tax thereon, taken together.
The company said the overall payout will be guided by the amount of surplus funds at the end of a fiscal: (a) In case of surplus funds at the end of financial year over Rs.15,000 crore, then the overall payout for shareholders as a percentage of standalone profit will be over 70 per cent (b) Surplus funds Rs.7,500 crore to Rs.15,000 crore, then the overall payout will be up to 70 per cent (c) Surplus funds less than Rs.7,500 crore, overall payout will be up to 50 per cent.
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