Bajaj Auto Q4 Review - Margin Resilience Driven By Exports: ICICI Securities
Bajaj Auto Ltd. Pulsar motorcycles sit ready at the end of the assembly line at the company’s factory in Pune, India. (Photographer: Kuni Takahashi/Bloomberg)

Bajaj Auto Q4 Review - Margin Resilience Driven By Exports: ICICI Securities

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.

ICICI Securities Report

Bajaj Auto Ltd.’s Q4 FY21 margins were a beat on consensus expectations at 17.7% (down 65 basis points YoY).

The company’s margin resilience was driven by -

  1. rise in export mix (up 340bps YoY at 46.4%) and
  2. increased share of Pulsar-125cc has led to superior domestic motorcycle mix (share up 13.7% to 26.3%).

Management’s focus on building on electric vehicles starting with Chetak is a long-term positive.

They believe existing incumbents are well placed in terms of technology/distribution and brand to handle the potential entry of private equity-backed start-up companies in two-wheelers.

Click on the attachment to read the full report:

ICICI Securities Bajaj Auto Q4FY21 Results Update.pdf

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