Bajaj Auto Q2 Results Preview: Net profit likely to rise 13% despite shrinking sales volumes

Bajaj Auto—whose popular motorcycles include the Dominar, the Pulsar and the Avenger—is all set to report its financial results for the July-September period on Wednesday, October 18. Analysts widely expect Bajaj Auto, the country's largest two- and three-wheeler maker by sales as well as market value, to secure double-digit growth in quarterly net profit on the back of a nearly 200-basis-point rise in its margin, owing to higher realisations despite shrinking volumes. 

According to Zee Business research, Bajaj Auto is estimated to report a standalone net profit of Rs 1,725 crore for the quarter ended September 30, 2023, which translates into a year-on-year increase of 12.7 per cent. The analysts peg the auto major's revenue for the three-month period to grow 5.9 per cent to Rs 10,800 crore. 

They expect Bajaj Auto to post Rs 2,060 crore in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the second quarter of the current financial year, as against Rs 1,759 crore for the corresponding period a year ago. 

Zee Business analysts peg the company's margin for the fiscal second quarter at 19.1 per cent, as against 17.2 per cent for the year-ago period. They estimate the two- and three-wheeler maker's sales realisations to improve by 14.3 per cent on a year-on-year basis to Rs 1.01 per unit, despite an 8.4 per cent contraction in quarterly volumes to 10.54 lakh units. 

Analysts will closely look out for the company's outlook on exports and any updates on its launches in the premium segment.

Here's how Bajaj Auto fared in Q1

Bajaj Auto began the financial year on a strong note with a record quarterly EBITDA. Its standalone net profit  for the April-June period jumped 42 per cent to Rs 1,665 crore over revenue growth to the tune of 28.8 per cent to Rs 10,310 crore. 

The auto maker's EBITDA surged 51 per cent to Rs 1,955 crore and margin improved by 280 basis points to 19 per cent. 

Bajaj Auto shares: Past performance

As of October 16, Bajaj Auto shares had grown 40 per cent in value in the past year, sharply outperforming a 14 per cent rise in the headline Nifty50 index. 

The stock finished the September quarter 7.9 per cent stronger as against a 2.3 per cent gain in the benchmark gauge.

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