Bajaj Auto will report its June-quarter earnings on Friday and the two-wheeler maker is likely to outperform the rest of its peers for the second straight quarter.
- In Q1, Bajaj’s volume growth was 2.4 percent while Hero Motocorp’s volume fell 12.5 percent, TVS’ volumes was down 0.5 percent, Eicher’s Royal Enfield volumes fell almost 20 percent. So Bajaj has been the best of the lot in that sense. Therefore, revenue growth of 2.2 percent is what we are factoring in.
- The EBITDA is expected to fall by about 7.5 percent, margins expected to fall to 15.6 percent versus 17.2 percent.
- Last quarter, the margins were down for the fourth consecutive quarter because of series of issues like higher raw material costs, higher discounts that the company had to give to sell their products as well as the inferior product mixture, all of this will put pressure on its margins.
- Profit is expected to fall about 3.6 percent at Rs 1,075 crore.
- In 2019 Bajaj Auto shares are down 7 percent while Hero is down 21 percent.