Bajaj Auto is a very well known and the second-biggest motorcycle maker. On Thursday, the company took a down path, when it saw a drop of 4.3% in first quarter profit at Rs 175 crore against Rs 183 crore in April-June ’07 period. During the same period of the last fiscal, the company had the net sales of Rs 2108.6, whereas this year it has reported a growth of 9.5% growth at Rs 2310.7 crore.

Headquartered in Pune, the company had been long complaining about the increase in raw material costs, which had been affecting its profit margins.

Earlier this year, the company had split into three units, and on May 26 it re-listed it self on the stock exchanges where it saw the share price close up 9.6% at Bombay Stock Exchange.

 In April June 08, the operating margins of the company fell to 11.5% from 13.4% in the corresponding period last year.

On the other hand, Bajaj Holding & Investment reported a consolidated net profit of Rs 51.37 crore for the quarter ended June 30. The net profit of the company fell more than half as compared to the period a year ago, where it had recorded a consolidated net profit of Rs 104.20 crore.