Bajaj Auto Q3 Results Preview: Net profit likely to increase 12% with 260 bps margin expansion

Bajaj Auto is all set to report its financial results for the October-December period on Wednesday, January 25. The Pune-based auto major is likely to report a quarterly net profit of Rs 1,365 crore, according to Zee Business research. That translates to an increase in net profit to 12.4 per cent on a year-on-year basis. 

The company is estimated to report quarterly revenue of Rs 8,950 crore, which would mean a decline of 0.8 per cent compared with the corresponding period a year ago, according to Zee Business research.

Bajaj Auto's margin — a key measure of a business's profitability — is estimated to improve to 17.8 per cent in the quarter ended December 2022, from 15.2 per cent in the year-ago period, owing to easing raw material prices and currency changes. 

The auto maker is estimated to report a 16.7 per cent year-on-year drop in sales volumes to 9,83,276 vehicles, with a three per cent fall in two-wheeler volumes and a 31 per cent drop in two-wheeler export volumes, according to Zee Business research.  

The company's EBITDA or earnings before interest, taxes, depreciation and ammortisation for the October-December period is pegged at Rs 1,595 crore, up 16.2 per cent compared with the year-ago period, according to Zee Business research. 

Analysts will closely track Bajaj Auto's earnings report for more clarity on the launch of electric vehicles.

Bajaj Auto shares gained 2.5 per cent in value in the quarter ended December 2022, a period in which the Sensex benchmark rose 5.9 per cent. 

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