Bajaj Auto Q2 PAT seen up 7.3%, revenues may fall: Poll

Bajaj Auto will declare its second quarter (July-September) results on Wednesday. According to a CNBC-TV18 poll, numbers will positively surprise the street only due to rupee depreciation during the quarter.

Analysts on an average expect profit of two-wheeler company to rise 7.3 percent year-on-year to Rs 795 crore, but revenues may fall 1.5 percent Y-o-Y to Rs 4,900 crore in September quarter due to weak domestic demand and strike at Chakan plant.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to jump 9.2 percent on yearly basis to Rs 1,000 crore and operating profit margin may increase 200 basis points Y-o-Y to 20.4 percent in the quarter gone by.

Bajaj Auto will be the only auto company to show sequential margin expansion of 160 basis points due to rupee depreciation. Its exports contribution to sales is 35 percent.

Its margins (adjusted for mark-to-market hit) had expanded over 200 basis points Q-o-Q in June quarter as rupee realisation on exports jumped from 49 to 55 during the quarter. Hence, analysts expect similar margin expansion in September quarter with likely rupee realisation rate of around 59.

Volume growth in Q2

Volumes were weak in second quarter, down 8.3 percent Y-o-Y to 9.61 lakh due to fall in domestic demand and strike at Chakan plant.

Motorcycles sales fell 8.5 percent Y-o-Y to 8.49 lakh units while three-wheeler sales slipped 7.2 percent on yearly basis to 1.12 lakh units. Exports during the quarter rose 2.8 percent Y-o-Y to 4.01 lakh units.