Q4FY22 Preview: Bajaj Auto: Revenues seen at Rs79,723 million, PAT at Rs10,897 million

26 Apr 2022 , 09:26 AM

Result date: 27^th April, 2022
Recommendation: Add
Target price: Rs4,000
 
Bajaj Auto is likely to post a subdued performance in the March 2022 quarter. The company’s sales volumes declined 17% compared to the year-ago quarter and 17.3% on a sequential basis. However, price hikes will curtail fall in revenue to 7.3% over the year-ago quarter and 11.6% on a sequential basis. Company undertook price hikes in January 2022 to pass on pressures from rising input costs (especially aluminium).

Decline in EBITDA as well as PAT is likely to be much higher, especially on a year-on-year basis. Key margin tailwinds include price hikes, favorable currency and richer revenue mix. On the flipside, rising input costs and negative operating leverage could continue to pull margins downward.
 
Important management insights to watch out for:

• Outlook on demand across all segments and markets
• Trends in input cost inflation, pricing action planned and margin levers

 

Rs Million	March 2022 estimates	YoY change	QoQ change
Revenue	79,723	(7.3)%	(11.6)%
EBITDA	12,180	(20.1)%	(11.2)%
Profit After Tax	10,897	(18.2)%	(10.3)%

Source: IIFL Research