The board of directors of Bajaj Auto Ltd. on Thursday approved the incorporation of a wholly owned subsidiary to pursue opportunities in electric and hybrid vehicle space.
“The wholly owned subsidiary will leverage the growth opportunities in the evolving mobility space and help the company venture into the manufacturing of electric and hybrid vehicles in the two-, three- and light four-wheeler categories,” Bajaj Auto said in a regulatory filing.
The yet-to-be-named firm is proposed to have authorised capital of ₹100 crore and paid up capital of ₹5 crore, the company said.
Bajaj Auto has already forayed into EV space with a scooter under the Chetak brand.
The company on Thursday reported a standalone net profit for the quarter ended June 30 that more than doubled to ₹1,061 crore from Rs 528 crore in the year ago period.
Revenue from operations increased to ₹7,386 crore from ₹3,079 crore.
“Q1/ FY22 has been a challenging quarter; the recovery over the past three quarters got undone with the second wave of COVID-19 which again led to restrictions and full or partial lockdowns. This resulted in weaker domestic demand, which was partially off-set with strong exports across all major geographies,” the company said.
“While the pandemic has impacted Q1 of FY21 and of FY22, the severity of impact was very different and hence, performance of the two quarters are not strictly comparable,” it added.
During the quarter, the company sold over 1 million units in India and across the globe. It sold almost 3,42,000 units of motorcycles in the domestic market and 14,000 units of commercial vehicles, a fraction of the volume generated in pre-COVID times. It sold over 6,48,000 units in various international markets, despite challenges in availability of containers, it said.
As on June 30, the company had surplus cash and cash equivalent worth ₹19,097 crore as against ₹17,689 crore as on March 31.