Bajaj Auto Q3 preview: PAT may surge 33% YoY on strong volumes, price hikes
Bajaj Auto is expected to report strong double-digit growth in earnings for the quarter ended December, aided by higher volumes, price hikes, and easing input cost pressures.
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The two-wheeler maker’s net profit is seen rising a sharp 33.3% year-on-year (YoY) to Rs 1,987 crore, led by an over 29% growth in revenue and a 32% growth in the operating profit, the average of estimates given by eight brokerage firms showed.
Revenue is seen rising 29% YoY to Rs 12,039 crore, and operating profit may increase 32% to Rs 2,341 crore.
The company is scheduled to release its earnings for the third quarter of the current financial year on Wednesday.
For the quarter ended December, Bajaj Auto reported a 32% YoY growth in sales volumes at 12,00,997 units.
Here’s a summary of who expects what from the two- and three-wheeler major:
Kotak Institutional Equities
Volumes have been strong, led by a 38% YoY increase in the domestic 2W and 3W segment on account of strong festive demand, partly offset by a 3-12% decline in exports in 2W segment due to weak demand trends in Africa and South Asia regions.
We expect revenues to increase by 29% YoY, led by a 22% increase in volumes and 6-7% increase in ASPs (average selling price) due to the higher mix of the 3W and premium 2W segments, lower mix of the export 2W segment, price increases and favorable FX.
We expect EBITDA margin to remain flat QoQ in 3QFY24 due to operating leverage benefits and lower advertisement spends, partly offset by inferior product mix.
Motilal Oswal Securities
Export volumes, despite declining 3% YoY are showing a gradual recovery due to improvement in global macros.
The festival season and the low
