Two-wheeler and three-wheeler maker Bajaj Auto is likely to report muted performance in the fourth quarter ended as the total volumes declined along with weakness in exports. The company is set to announce its results on 25 April,2023.
Analysts expect revenue and profit in Q4FY23 to see an increase from a year ago, but the topline and bottomline to shrink sequentially.
Bajaj Auto has seen its volumes decline by 12.8 per cent sequentially at 8.6 lakh units during the March quarter, mainly on account of lower exports. Exports during the January-March period were down 21 per cent quarter-on-quarter (QoQ) and 41% year-on-year (YoY).
“BAL is expected to report a muted performance in Q4FY23 with total volumes down 12.8% QoQ at 8.6 lakh units. Export volumes are down 21% QoQ while domestic volumes are down 6% QoQ with exports share in volumes at 40% vs. 45% in Q3FY23,” said ICICI Direct Research in its report.
“The 3-W share in volume mix improved ~300 bps QoQ to 16%. This, coupled with improved product mix in the 2-W space, is expected to aid ~5% QoQ rise in blended ASP’s to ₹96,500/unit,” it added.
For the quarter, it expect Bajaj Auto to report net sales of ₹8,526 crore, down 8.5% QoQ. EBITDA in Q4FY23 is expected at ₹1,583 crore with EBITDA margins at 18.6%, down 50 bps QoQ. Consequent PAT for the quarter is expected at ₹1,357 crore, down 9% QoQ.
While, anothr brokerage Sharekhan expects the topline to decline 11 per cent QoQ, while margins are seen contracting by 72 bps. However, revenue is expected to rise on a YoY basis, led by higher ASP on the back of a higher share of three-wheelers in the product mix.
The company reported standalone net profit of ₹1,491.42 crore for the quarter ended 31 December, 2022 (Q3FY23), up 22.8% from a year ago. It was ₹1,214 crore in the year-ago period. The revenue from operations came in at ₹9,315.14 crore, up 3% on-year with robust double-digit revenue growth in the domestic business offsetting the drop in exports arising from the challenging market context.
On Monday. the company’s scrip ended 0.62% higher at ₹4,335.70 on BSE.
