Pune-based two-wheeler maker Bajaj Auto is expected to report weak earnings due to impact of demonetisation. Profit is seen falling 1.5 percent year-on-year to Rs 888 crore in the quarter gone by.
Revenue during the quarter may decline 9.2 percent to Rs 5,051 crore on lower sales volumes, according to average of estimates of analysts polled by CNBC-TV18.
Sales volumes dropped 10.5 percent year-on-year in Q3 to 8.51 lakh units against a 2.3 percent degrowth in Q2 and 1.8 percent fall in Q1.
Both domestic and export sales saw drop in the quarter gone by. In November, enquiries and retail sales fell 50-60 percent post currency demonetisation.
Weakness in 3-wheeler sales and continued weakness in exports also added to pain. Deterioration in 2-wheeler product mix and commodity price pressure may impact margin QoQ.
Motorcycle volumes were down 9.5 percent YoY at 7.48 lakh units and 3-wheeler volumes fell 17.2 percent YoY to 1.02 lakh units in Q3.
Operating profit is likely to fall 13.8 percent to Rs 1,010 crore and margin may contract by 110 basis points to 19.9 percent compared with year-ago period.
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