Bajaj Auto Q1 Review - Margin Bottom Not Yet In Sight, Lacks Imminent Triggers: ICICI Direct
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ICICI Direct Report
Bajaj Auto Ltd. reported steady Q1 FY22 results under the circumstances.
Total volumes for the quarter were at 10.06 lakh units, down 14% QoQ.
The two-wheeler volumes fell 14.2%, with three-wheeler decline at 12.6% (three-wheeler comprised ~10% of total volumes, unchanged QoQ).
Domestic volumes were down ~33% QoQ, with exports up ~2% QoQ. Blended average selling prices at Rs 73,419/unit were nearly flat QoQ.
Gross margins declined ~110 basis points QoQ, with employee costs rising 130 basis points QoQ on percentage of sales basis.
Bajaj Auto informed it would be setting up a wholly-owned subsidiary for manufacturing electric two-wheeler, three-wheeler and light four-wheeler.
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