Bajaj Auto Q2 Results Preview: Strong volumes to drive revenue growth up to 29% YoY. PAT can increase up to 24%

Greater two wheels Bajaj Cars It is expected to post 24% to 29% year-on-year growth in its September quarter. revenue led by a strong rebound in volumes and an increase in the average selling price (ASP) of the vehicle, according to estimates from four brokerages.

Income in the report. room is expected in a range of Rs 13,336 crore and Rs 13,545 crore.

Bajaj Auto’s year-on-year net profit (adjusted) growth is likely to be 22-24 per cent, estimates revealed, putting profit after tax in the range of Rs 2,246 crore and Rs 2,275 crore .

The estimates taken into account are those of Kotak Institutional Equities, Nuvama Institutional Equities, Yes Securities and Axis Securities.

Earnings estimates are higher for Kotak Equities and lower for Axis. As for PAT, Yes Securities remains the most optimistic, while Kotak and Axis are the most conservative.

The company will announce its Q2FY25 earnings on Wednesday, October 16, 2024.

Here’s what the brokerages said:

Kotak Stock

Kotak Equities estimates the company’s revenue to grow 29% YoY and 13% QoQ to Rs 13,545 crore. Adjusted net profit could grow 22% YoY and 13% QoQ to Rs 2,246 crore. Sales volumes in the reported quarter could increase by 16.2% YoY and 11.1% QoQ to 12,21,504 units.

Growth in PAT and revenue will be led by volumes that are likely to increase 16% year-on-year in Q2FY25, Kotak said in a previous note. A 27% year-on-year increase in domestic 2Ws in the premium motorcycle segment and channel filling led the volume increase, while exports rose 5% year-on-year.

The two-wheeler maker also saw a 12% rise in average selling price (ASP) of vehicles powered by a higher mix of premium 2W motorcycles (domestic and export markets), 2W and 3W electrical segments, as well as the accumulation of PLI benefits.

Kotak expects earnings before interest, taxes, Depreciation and Amortization (THE EVENTS) margin (excluding PLI) to improve by 30 bps QoQ in 2QFY25 led by operations leverage Commodity benefits and tailwinds are partly offset by an inferior product mix.

nuvma

Nuvama pegs Bajaj Auto’s revenue at Rs 13,488 crore, which could rise 25% YoY and 13% QoQ. Adjusted PAT could rise 23% YoY and 14% QoQ to Rs 2,266 crore.

The company’s EBITDA is seen at Rs 2,727 crore, which could represent a 28% YoY increase and a 13% QoQ increase.

Echoing Kotak’s views, Nuvama said the revenue growth will be driven by strong volume growth in the July-September quarter. The EBITDA margin will widen thanks to better net prices, he added.

The key aspects to take into account are the demand perspectives in domestic and foreign markets, and electric mobility and CNG initiatives.

If values

Yes sees 25% YoY growth and 13% QoQ growth in Bajaj Auto’s Q2 revenue at Rs 13,419 crore. PAT could rise 24% YoY and 14% QoQ to Rs 2,275 crore.

EBITDA is estimated at Rs 2,768 crore, which is likely to be a YoY profit of 84 bps and a QoQ profit of 38 bps due to better operating leverage and favorable product mix.

Yes Securities also sees overall volume growth of 16% YoY and 11% QoQ to 12.2 lakh units. Realizations are expected to grow 7.4% YoY and 1.5% QoQ to Rs 1,09,900 per unit.

Axis values

Axis Securities’ revenue estimates for Q2FY25 are around Rs 13,336 crore, which is likely to register 24% YoY growth and 12% QoQ growth. PAT is expected to grow 22% YoY and 13% QoQ.

In terms of sales volume growth, Axis expects 16% year-on-year growth and 11% quarter-on-quarter growth to 12,21,504 units.

EBITDA may rise 27% YoY and 12% sequentially to Rs 2,709 crore, while EBITDA margin is pegged at around 20.3%, which will be 52 bps YoY growth and 6 QoQ growth. pb.

Volume growth and ASP increase are the triggers for revenue growth.

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