Bajaj Auto Q3 Review - Cost Control, Favourable Mix Drive Profitability: Prabhudas Lilladher
An employee works on the assembly line at the Bajaj Auto Ltd. plant in Chakan, India. (Photographer Adeel Halim/Bloomberg)

Bajaj Auto Q3 Review - Cost Control, Favourable Mix Drive Profitability: Prabhudas Lilladher

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.

Prabhudas Lilladher Report

Bajaj Auto Ltd.’s Q3 FY21 revenues were in-line while there was approximately 6.6%/6% beat at Ebitda/adjusted profit after tax.

This was led by continued tight cost control. Ebitda margins expanded 150 basis point YoY at 19.4% (our estimate18%) helped by better gross margins at 29.2% (our estimate 28.5%) due to favorable mix.

While near term outlook looks positive given -

1. healthy exports momentum both for two-wheeler/three-wheeler and

2. likely beneficiary of remission of duties or taxes on export product scheme, the same is reflected in valuations.

Click on the attachment to read the full report:

Prabhudas Lilladher Bajaj Auto Q3FY21 Result Update.pdf

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