Bajaj Auto Q2 Results Review - Strong Performance; Attractive Valuation: Reliance Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Reliance Securities Report.Bajaj Auto Ltd. delivered a healthy operating performance, with Ebitda margin of 17.2% (24 basis points above our estimate of 17%), on the back of an improved realisation, better mix and favorable exchange rate. Revenue grew by 16% YoY (up 28% QoQ) to Rs 102 billion (3.6% above our estimate of Rs 98.5 billion), on the back of average selling price growth (up 16% YoY/up 3% QoQ) to Rs 88,640 and volume growth (up 1% YoY/up 23% QoQ) to 11,51,012 units. Its Ebitda margin expanded by 125 basis points YoY (up 104 bps QoQ) to 17.2% versus our estimate of 17%, due to better control on employee cost and other expenses in addition to higher realisation. Bajaj Auto’s reported adjusted profit after tax was Rs 15.3 billion (up 20% YoY/up 30% QoQ), versus our estimate of Rs 14.6 billion. We believe that the better product mix, higher realisation, market share gain in domestic market, reviving three-wheeler business coupled with a favorable exchange rate would support Bajaj Auto’s margins, despite the subdued exports..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bajaj Auto Q2 Results Review - Strong Performance; Attractive Valuation: Reliance Securities

Bajaj Auto delivered a healthy operating performance, on the back of an improved realisation, better mix, favorable exchange rate.

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