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

24 Jan 2023 , 09:45 AM

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 Capital Services 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 Capital Services.

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