Bajaj Auto Q2 PAT seen up 11% at Rs 757 cr

Country's second largest two-wheeler maker Bajaj Auto is expected to report a rise of 11% in profit after tax of Rs 757 crore for the quarter ended September 2011 as against Rs 682 crore in the corresponding quarter of last fiscal, according to CNBC-TV18 estimates.

Revenues are seen going up 16.5% to Rs 5,057 crore from Rs 4,341 crore year-on-year. However, operating profit margin is expected to be at 19.2% as against 20.6% during the same period.

On quarter-on-quarter basis, revenues are likely to go up by 6% and PAT is seen going up by 6.5%.

What to watch out for :

Revenues growth of 16% due to 16.3% volume growth seen in the quarter, led by strong momentum in export market

Realizations are likely to grow 1% YoY (sequentially flat) at Rs 43834/unit

Expect to witness slight margin improvement QoQ due to higher export sales and small dip in raw mat cost

Raw material as % of sales to reduce marginally QoQ to 72% versus 72.6%

Price hike of 2% has taken during the quarter.

Last quarter, margins slipped below 20% for the first time in 7 quarters. 

Duty Entitlement Pass Book (DEPB)

Govt replaced DEPB scheme with duty drawback w.e.f .October 1, 2011

New rate at 5.5% versus 9% DEPB earlier

Impact on BAL will be 3.5% of export revenues, 90 basis points impact on EBITDA margins

Management said they would pass on impact of lower export incentive to consumers