MUMBAI, May 14: Bajaj Auto Ltd has sprung a surprise by announcing a bonus issue and better financial results than what analysts and marketmen predicted.

 It can be in any ratio,'' said Bajaj Auto chairman Rahul Bajaj.

The financial results and the bonus issue surprised marketmen. As a result, the scrip bounced back smartly from Rs 824 to Rs 934.50 before settling at Rs 915.25 on the Bombay Stock Exchange on Wednesday. ``The Bajaj bonus announcement changed the course of the market,'' said a BSE broker.

Sales and income from operations during the year increased by 16.1 % to 3,244.12 crore from Rs 2,793.80 crore. The other income spurted to Rs 209.98 crore from Rs 138.24 crore, an increase of 51.9 %. The company has earned a 18.2 % higher gross profit before interest at Rs 802.25 crore against Rs 678.73 crore. The interest charges have dropped to Rs 7.31 crore from Rs 9.90 crore.

The company has earned an 18.9 % increase in gross profit before depreciation at Rs 794.94 crore from Rs 668.83 crore last year. The depreciation will absorb higher amount of Rs 117.87 crore against Rs 73.71 crore and taxation is also higher at Rs 236.50 crore against Rs 177.00 crore. The net profit has increased by only 5.4 % to Rs 440.57 crore from Rs 418.12 crore last year.

The disposable surplus after adjustment for earlier years amounted to Rs 439.96 crore (Rs 416.84 crore). The proposed dividend will absorb Rs 79.59 crore (same) and a sum of Rs 7.96 crore has been provided for corporate dividend tax. The general reserve as at the end of the year stood at Rs 1345.99 crore against Rs 994.60 crore.

Production of two and three-wheelers for the year was 14,39,174 (including CKD packs) against 13,02,031 during 1995-96, an increase of 10.5 %. Sales for the year were 14,22,849 against 13,07,211, showing an increase of 8.8 %. The market share of the company in the two and three-wheeler market in 1996-97 was 44.5 % against 46 % in 1995-96. ``The second half of last year was worse than the first half,'' Bajaj said.

The company's exports during the year amounted to Rs 158.20 crore against Rs 189.55 crore. The production capacity at the end of the year was 1.83 million vehicles. The same would increase to two million vehicles per annum by the end of 1998. ``The company plans a third manufacturing plant near Pune which will have facilities for production of new generation two-wheelers. This plant will enventually have production capacity of one million vehicles per annum,'' Bajaj said.Thist year, the company proposes to introduce a diesel rear-engine auto-rickshaw, Cygnet (a 60 cc vehicle).

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