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

Result date: 25^th 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

Source: IIFL Research