The net profit for financial Q1 of

The net profit for financial Q1 of Bajaj Auto Finance is Rs 46.8 crore.This is compared to 15.2 crore in the previous quarter, a year ago. There has been a huge leap of 208%.Meanwhile, the net interest income is Rs 224 crore Vs 148 crore in the previous quarter, a year ago.Earlier, Bajaj Auto informed that it may consider entering into a contract manufacturing deal rather than a joint venture with Renault-Nissan alliance in order to produce the ultra-low-cost car (ULC), which is expected to be released in market by 2012.Bajaj Auto (BAL)'s Managing Director Rajiv Bajaj said that, both the firms can attain their mutual objective by the means of a simplified OEM arrangement rather than creating a new entity by forming a JV which is not necessary.Previously, Bajaj Auto had signed a tripartite agreement with Renault and Nissan in 2008 to manufacture a small car which is priced around $2,500. Baja further added that company is yet to take a final decision, besides all the three partners involved will together decide the future course of action. After that a joint decision will be taken by all the parties involved.Bajaj informed that as per the consensus reached during the last year between the two-wheeler major and Renault-Nissan, BAL will be taking the responsibility of developing and manufacturing of the ULC, whereas Franco-Japanese partners will handle marketing and sales.However, according to a memorandum of understanding signed in May 2008, Bajaj was believed to hold 50 per cent in a joint venture for developing the car, while Renault and Nissan would be holding 25 per cent stake each in the venture.Bajaj has also denied the reports relating to break of partnership. Bajaj commenting on the issue clarified that the reports are not true and informed that partnership is in place, and that the project is going on as per the schedule.The ULC was actually scheduled to be released in India in 2011, but it was delayed mainly due to dissimilarity in the opinion of the partners in terms of pricing and design. Previously, Renault intended to price the car at around $2,500, whereas BAL insisted on lowering the overall cost of ownership.The companies had publicized that the ULC would be manufactured in an all-new plant to be set up in Chakan, Maharashtra with an initial capacity of 4 lakh units per year.