Emkay Global Financial Services has come out with its third quarter (September-December) earnings estimates for the automobile sector. The brokerage house expects Bajaj Auto to report a 7.2 percent growth Y-o-Y in net profit at Rs 877.8 crore.
Sales of Bajaj Auto are expected to increase by 3 percent Q-o-Q (down 1.6 percent Y-o-Y) to Rs 5,328.7 crore, according to Emkay Global Financial Services.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 16 percent Y-o-Y to Rs 1,174.1 crore.
EBITDA margin or operating profit margin is likely to be at 22 percent in December quarter as against 22.6 percent in September quarter and 18.7 percent in a year ago period.
Emkay Global Financial Services' Report on Bajaj Auto:
Bajaj volumes for the quarter (-12 percent YoY/ +3 percent Q-o-Q), with export volumes now 45 percent of total sales. Key margin drivers in the quarter (1) Price hike during the quarter should offset higher commodity cost (2) lower proportion of Pulsar sales and likely higher promotional expenditures should impact margins. Expect US dollar realisation of Rs 61/USD for the quarter (flat Q-o-Q).
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