Stock Market

Bajaj Auto Q2 profit seen up 9%, weak volume may impact revenue

Two-wheeler maker Bajaj Auto ‘s profit is likely to increase 9.3 percent year-on-year to Rs 1,020.6 crore but revenue may be flat at Rs 6,103 crore against Rs 6,097.8 crore due to tepid volume growth.

Analysts expect another lacklustre quarter from Bajaj Auto that recorded a 2.3 percent degrowth in sales volume. It sold 10.3 lakh units in Q2FY17 against 10.56 lakh units sold in Q2FY16, hit by big fall in export markets like Nigeria and Egypt.

The company underperformed its peers Hero Motocorp and TVS Motor that showed 16 percent and 20 percent growth in Q2 sales volumes, respectively.

Export volumes fell 27.3 percent YoY to 3.78 lakh units and three-wheeler volumes declined 12.3 percent YoY to 1.34 lakh units while domestic volume growth was silver lining, up 22 percent to 6.53 lakh units.

Success of domestic new launches in the 100cc segment like Platina and CT 100 led to good growth in domestic segment. New launches in the executive / premium segment like V15 and Avenger series have been seeing good demand, analysts say.

Its market share in domestic motorcycle segment remained stable at 20 percent.

According to analysts polled by CNBC-TV18, EBITDA (earnings before interest, tax, depreciation and amortisation) may fall 3 percent to Rs 1,279.6 crore and margin may shrink 60 basis points to 20.9 percent in Q2 YoY.