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Bajaj Auto Q4 Preview: Net profit may slump 25-30%; revenue likely to decline 12%

Subdued 2W demand in the domestic and export markets, lower 3W push in the export markets and rising input costs to take a toll on the company's financial performance

April 27, 2022 / 11:39 AM IST
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Bajaj Auto Limited, one of the largest two-wheeler (2W) manufacturers in India, continues to be plagued by the slowdown in the domestic 2W industry and is expected to witness another dull quarter in terms of financial performance.

The largest three-wheeler (3W) manufacturer in the country is expected to register a 25 to 30 percent slump in its profit after tax (PAT) when it will declare its results on April 27 for the quarter and financial year ended March 2022. Brokerages expect the company to report a profit between Rs 920 crore and Rs 1,030 crore for the quarter. On a sequential basis, this is a decline of 15 to 24 percent.

The revenue from operations for the reported quarter is forecasted to decline by 12 percent on year to Rs 7,580 crore. On a sequential basis, the decline in revenue is 16 percent. The year-on-year decline in revenues is a result of the significant drop in domestic 2W volumes. Its export volumes in the 2W category also witnessed a decline during the quarter which impacted the revenues. The company also witnessed a decline in 3W volumes in the export market. However, it was partly negated by the spike in volumes of 3W in the domestic market.

The Pune-based company had recorded a standalone PAT of Rs 1,332 crore during the corresponding quarter last year when it had achieved the standalone revenues of Rs 8,596 crore.