Q1FY24 Preview: Bajaj Auto: Revenue seen at Rs. 103,346 million, PAT at Rs. 16,828 million

21 Jul 2023 , 01:48 PM

Result date: 25^th July, 2023

Recommendation: Buy 

Target price: Rs. 5,000

Bajaj Auto could post 10% growth in volumes as compared to the year ago quarter. Sequentially, the company’s sales volumes could grow 19.5%, believe analysts at IIFL Capital Services. The company’s average sales price could increase over the year ago quarter, but could witness some downside on a sequential basis owing to an adverse product mix.

Operating leverage is likely to be the key margin tailwind while weaker revenue mix is expected to be the key margin headwind during the quarter.

The company’s Profit After Tax (PAT) could surge 43.4% over the year-ago quarter.

Important management insights to watch out for:

• Demand trends across urban and rural markets
• Outlook on pricing, input costs and margins

	June 2023 estimates	YoY change	QoQ change
Volumes	1,027,142	10.0%	19.5%
Revenue (Rs. mn)	103,346	29.1%	16.1%
EBITDA (Rs. mn)	19,826	52.9%	15.5%
EBITDA margin	19.2%	298 bps	(9) bps
Profit After Tax (Rs. mn)	16,828	43.4%	17.4%

Source: IIFL Research