Q2FY24 Preview: Bajaj Auto: Revenue seen at Rs. 108,001 million, PAT at Rs. 17,385 million

17 Oct 2023 , 10:28 AM

Result date: October 18, 2023

Recommendation: Buy

Target price: Rs. 5,800

Bajaj Auto is likely to post healthy performance in the September 2023 quarter, despite fall in sales volume as compared to the year ago quarter. Volumes fell 8.5% over the year-ago quarter but grew 3% sequentially. Analysts at IIFL Capital Services expect average selling price and gross margin to improve sequentially on the back of a better product mix.

Higher sales of three wheelers, fall in precious metals and higher USD-INR are key margin tailwinds for the company during the quarter.

The company could post 13.6% growth in Profit After Tax (PAT) as compared to the year-ago quarter.

Important management insights to watch out for:

• Demand outlook in domestic, overseas markets
• Margin drivers and future pricing action lined up

	September 2023 estimates	YoY change	QoQ change
Volumes	1,053,330	(8.5)%	2.6%
Revenue (Rs. mn)	108,001	5.9%	4.8%
EBITDA (Rs. mn)	20,782	18.2%	6.4%
EBITDA margin	19.2%	200 bps	29 bps
Profit After Tax (Rs. mn)	17,385	13.6%	4.4%

Source: IIFL Research