BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
Bajaj Auto Ltd.’s Q4 FY22 operating performance came in ahead of our estimate, led by strong beat on revenue and gross margin. Revenue beat of ~5% was primarily led by higher realisations at Rs 79,100 versus our estimate of Rs 77,600.
Gross margin came in at 28.1% versus our estimate of 25.3%. The beat was led by price hikes, higher exports, favorable forex realisations, raw material cost deferment and an optimum product mix. Ebitda margin came in at 17.1%.
We expect raw material cost pressures to spill over in Q1 FY23, post which a gradual correction in raw material cost may benefit margins. However, currency tailwind, favorable mix and price hikes should partially support margins.
Bajaj Auto's management has also guided that margins will remain stable despite raw material cost headwinds.
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