Pune-headquartered Bajaj Auto Limited is set to release its earnings report for the first fiscal quarter of FY25 on July 16, Tuesday. An increase in volumes and a diversified product mix are expected to boost the company's sales to high teen growth rates.
According to a Moneycontrol poll, the Triumph maker is anticipated to record a 14.3 percent year-on-year increase in revenue, reaching Rs 11,793 crore. Net profit is projected to surge 18 percent to Rs 1,965 crore from Rs 1,665 crore in the same quarter of the previous fiscal year.
Follow our live blog for all the market updates
Earnings estimates from analysts polled by Moneycontrol are in a narrow range, indicating that any positive or negative surprises could trigger a sharp reaction in the stock price.
Read: M&M, JSW in talks with Skoda Auto for potential partnership
What factors are driving Bajaj Auto's earnings?
Steady demand: Analysts suggest that the revenue performance of the company will be strong, driven by higher volume demand trends in the 125 cc motorcycle segment and robust growth in the domestic 3-wheeler segment.
Rich product mix: Bajaj Auto, over the past year, has had a series of launches, which brokerages predict are also key growth drivers in the coming quarters. For instance, in May 2024, it launched the biggest Pulsar. Last week, it launched the world’s first CNG motorcycle-Freedom 125 at a starting price of Rs 95,000 (ex-showroom, India).
Also read: Morgan Stanley upgrades Ambuja Cements to 'overweight'; raises price target for Ultratech
Improving exports: Kotak Institutional Equities believes that the increase in the export two-wheeler segment is due to improved demand trends in African and South Asian regions, which are growing from a previously lower base.
"EBITDA margin is expected to improve by 90bps largely aided by
a robust product mix, operating leverage and cost control efforts. However, on a sequential basis, the margin is expected to marginally decline by 20bps due to price escalations in some raw materials," Axis Securities said in a recent note on the company.
What to look out for in the quarterly show?
Above-average monsoon expectations and rural-focused budget reforms may lift the volumes for the segment.
Bajaj Auto shares were trading at Rs 9,541, higher by 1.2 percent from the last close. The Bajaj Auto stock has rallied over 40 percent since the start of the year.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
