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ICICI Direct Report
Bajaj Auto Ltd. reported a healthy performance in Q4 FY23.
Net revenues in Q4 FY23 came in at Rs 8,905 crore, down 4.4% QoQ. Blended average selling prices for the quarter were at Rs 1 lakh/unit, up 9.4% QoQ.
Ebitda in Q4 FY23 was at Rs 1,717 crore, margins:19.3% (up 20 basis points QoQ). Profit after tax was down 4% QoQ to Rs 1,433 crore, aided by higher topline, margins.
Key triggers for future price performance:
Gradual improvement in export markets, traction in 125 cc+ segment and recovery in commuter space to aid growth. We expect volume, net sales to grow at a compound annual growth rate of ~9.4%, ~15.8%, respectively, over FY23-25E.
Ramp-up of volumes in electric two-wheeler space, expansion of network to 120 cities by April 2024 from current ~80 cities and unveiling of Electric-thre-wheeler.
Global unveiling of its premium offering (mid-size category) under triumph badging (co-developed product) on June 27, 2023 and retails from Q2 FY24.
Margins, return on capital employed to reach 19.6%, 32.3% levels, respectively, by FY25E amid operating leverage gains, stable raw material prices and healthy export realisations.
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