Company sold 10.53 lakh units in September quarter, down 10.2 percent compared to 11.74 lakh units sold in same period last year, but up 137.7 percent QoQ.
Bajaj Auto, the two-and-three-wheeler maker, is expected to see around 10 percent YoY fall in bottomline and around 5 percent in revenue for the quarter-ended September 2020 due to decline in sales volumes and higher tax cost, but the sequential growth across parameters may be seen strong due to low base in June quarter amid lockdown.
Profit as well as revenue on sequential basis may grow more than 130 percent each in Q2.
The company sold 10.53 lakh units in the September quarter, down 10.2 percent compared to 11.74 lakh units sold in same period last year, but up 137.7 percent QoQ.
The volume decline YoY was due to 53 percent YoY fall in the three-wheeler segment and 11 percent YoY decline in export 2-wheeler volumes, but that was offset by 6 percent YoY growth in the domestic motorcycle segment volumes in Q2FY21.
"We expect revenues to decline by 5 percent YoY led by 10 percent YoY decline in volumes and 6 percent YoY increase in ASPs in Q2FY21," said Kotak Institutional Equities.
"The volume mix has been unfavourable with lower share of premium motorcycles and 3-wheeler resulting in decline in realisation by 1 percent QoQ (up 5 percent YoY)," said Prabhudas Lilladher.
Realisation is expected to rise due to BS6 launches, price hikes and currency benefits, while margin performance is expected to be strong on sequential as well as year-on-year."Gross margin is expected to increase owing to currency and commodity benefits, despite lower share of 3-wheeler. Also, EBITDA margin
is expected to expand 109 bps YoY (up 441 bps QoQ) due to a higher gross margin," Emkay Global said.The stock has registered a massive 49 percent rise in year-to-date (FY21), but gained only 2 percent in September quarter.