IDBI Capital: Tough Quarter For Bajaj Auto
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IDBI Capital Report
Bajaj Auto Ltd. Q2 FY21 result was below our and consensus estimates at all parameters due to impact of Merchandise Exports from India Scheme benefit, higher raw maretial cost and lower other income.
Ebitda margin for the quarter stood at 17.7% versus our and consensus estimates of 18.0% and 17.5% respectively on account of lower operating expenses.
We expect domestic two-wheeler/three-wheeler industry to see a double digit decline in FY21 driven by pandemic outbreak.
However stronger recovery in export market for two-wheeler/three-wheeler segment would help the company to partially mitigate the current slowdown in domestic market.
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