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Q3FY23 Preview: Bajaj Auto: Revenue seen at Rs90,036 million, PAT at Rs14,148 million

  • 24 Jan, 2023 |
  • 9:45 AM
  • Margin expansion could offset decline in volumes

Result date: 25th January, 2023

Recommendation: Add

Target price: Rs3,975

 

Bajaj Auto witnessed 17% decline in sales volume over the year-ago quarter and 15% decline sequentially. However, the revenue performance is likely to be better due to price hikes. Analysts at IIFL Securities expect the company’s revenue to remain flattish over the year-ago quarter, and decline 12% sequentially.

EBITDA margin though could witness expansion amid lower commodity prices, price hikes, weaker Rupee (-3% sequentially) and higher mix of 3 Wheelers. Negative operating leverage will be a key margin headwind sequentially, believe analysts at IIFL Securities.

Important management insights to watch out for:

  • Demand recovery in both domestic and international markets
  • Pricing outlook and margin drivers

 

 

December 2022 estimates

YoY change

QoQ change

Volumes

983,276

(16.8)%

(14.6)%

Revenue (Rs mn)

90,036

(0.2)%

(11.8)%

EBITDA (Rs mn)

16,021

16.8%

(8.9)%

EBITDA margin 

17.8%

258 bps

56 bps

Profit After Tax (Rs mn)

14,148

16.5%

(7.5)%

Source: IIFL Research

 

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