Bajaj Auto Q1 seen stable, net may grow 28%: Poll

Revenue, during the quarter, may jump 13.3 percent at Rs 5952 crore versus Rs 5252.4 crore in year-ago period. EBITDA is seen up 30.6 percent at Rs 1209 crore against Rs 925.2 crore year-on-year while operating profit margin may come in at 20.3 percent from 17.6 percent.

July 22, 2015 / 19:05 IST

Bajaj Auto is likely to see a stable April-June quarter. According to a CNBC-TV18 poll, the auto major is expected to post Q1 net profit growth at 27.7 percent at Rs 945 crore from Rs 740 crore in corresponding quarter last fiscal.

Revenue, during the quarter, may jump 13.3 percent at Rs 5952 crore versus Rs 5252.4 crore in year-ago period. EBITDA is seen up 30.6 percent at Rs 1209 crore against Rs 925.2 crore year-on-year while operating profit margin may come in at 20.3 percent from 17.6 percent. EBITDA margins may improve 270 basis points (bps) due to richer product mix.

Although volumes saw single digit growth on an annual basis, big jump is seen sequentially. Total volumes rose 2.5 percent (YoY) at 10.13 lakh units versus 9.88 lakh units. Volumes rebounded sharply by 29 percent (Q-o-Q) on a sequential basis.

Success of new launch in entry level segment CT 100 has driven sequential surge in volumes. Monthly run rate of two new launches Platina and CT 100 risen to 80000 units/month in June supported volume growth. The management expects run rate to improve to 1 lakh units/month in August.

Recovery is seen in many export markets like Sri lanka and Nigeria. Higher share of three-wheeler exports seen in the product mix this quarter leading to better margins. Realisations is expected to rise 9 percent (YoY) to Rs 57803 per unit.