Bajaj Auto Q2 Preview: Profit likely to rise 16% YoY; revenue growth seen in mid-single-digits
economictimes.indiatimes.comBajaj Auto is expected to report mid-single-digit revenue growth in the second quarter of the current fiscal, mainly driven by better realisations despite a drop in volumes.
Volumes for the September quarter declined 8% year-on-year (YoY), led by a 19% fall in the domestic two-wheeler segment due to base effect, and a 5% dip in export two-wheeler segment due to weak demand trends in African and South Asian regions.
Revenue for the quarter is seen growing anywhere between 6-8%, while profit is likely to rise about 16%, according to an average estimate of three brokerages.
EBITDA margin expansion YoY will likely be driven by better net pricing and product mix.
Key thing to watch out for in the earnings is the demand outlook in overseas markets.
In the first quarter, Bajaj Auto's net profit rose 42% YoY to Rs 1,665 crore, while revenue from operations jumped 29% to Rs 10,310 crore.
Here's what brokerages expect from Bajaj Auto's Q2:
Axis Securities
We expect revenue to increase by 6% YoY, led by higher ASP (17% YoY increase) due to higher overall share of 3W in the product mix, higher sales of premium MCs, and price hikes taken during the year partially offset by lower exports.
EBITDA margin is expected to improve by 40 bps on a QoQ basis in Q2FY24 led by a richer product mix, price increases and RM tailwinds.
Kotak Securities
We expect revenues to increase by 7% YoY led by an 18% YoY increase in ASPs due to a higher mix of the 3W segment, a lower mix of the domestic economy motorcycle segment, a lower mix of export 2W segment, price increases and favourable FX and 8% YoY decline in volumes.
Motilal Oswal
While exports volume declined 9% YoY, overall demand sentiments still seem to be improving as concerns related
