Bajaj Auto Ltd.’s quarterly profit and revenue are expected to rise in the quarter ended September, driven by exports and improvement in the domestic market.
Net profit of the Pune-based two-wheeler maker, which will announce its earnings on Wednesday, is expected to rise 12% sequentially to Rs 1,184 crore in the three months through September, according to the average of analysts’ estimates tracked by Bloomberg.
The standalone revenue may increase 15% over the preceding quarter to Rs 8,522 crore, while operating income is estimated to rise 11% sequentially to Rs 1,244 crore.
Analysts at Nirmal Bang Institutional equities, however, expect Ebitda margin to decline by 220 basis points over a year earlier due to raw-material headwinds. “Profitability is expected to be supported by a better mix (exports/three-wheelers, price hikes and cost-control measures,” it said.
The demand continues to improve sequentially as sales in the quarter ended September rose 11% to 11.44 lakh units. “Strong exports partially offset a domestic sales loss in the Premium segment due to a shortage of chips,” Motilal Oswal said in a note.
Two-wheeler demand in India, however, has suffered because of increased cost of vehicles ever since the transition to the stricter Bharat Stage VI emission standards. And higher raw-material prices have prompted at least three price hikes this year alone. On top of that, costlier fuel has been hurting sales, especially in smaller cities and towns.
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