
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:
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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