Bajaj Auto Q1 Review - Margin Bottom Not Yet In Sight, Lacks Imminent Triggers: ICICI Direct
A scooter made by Bajaj Auto Ltd. is parked on a road in Mumbai, India. (Photographer Adeel Halim/Bloomberg)

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.

Click on the attachment to read the full report:

ICICI Direct Bajaj Auto Q1FY22 Result Update.pdf

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