Bajaj Auto trades in green ahead of second quarter business update

Bajaj Auto share price on Friday traded in green ahead of the second quarter business update. The two-wheeler major Bajaj Auto is scheduled to announce its July-September quarter result for fiscal year 2022-23 (Q2FY23) on Friday, October 14.

The stock gained more than one per cent in early trade to hit day's high of Rs 3,663 on the NSE. At 10 AM, the counter was quoting a price of 3,642 apiece on the NSE and BSE as investors' sentiment remained positive ahead of the results.

Bajaj Auto Q2FY23 Result Preview
According to a Zee Business channel research, the Pune headquartered company is likely to post strong earnings during the second quarter. The company is expected to report a double digit sequential growth in net profit on the back of healthy volume-based sales during the quarter.

In September 2022, as per data, the company sold 3,48,355 units of two-wheeler and 46,392 units of commercial vehicles. In total the company sold 3,94,747 units.  

In Q2FY23, the company’s revenue may grow by 20.6 per cent year-on-year (YoY) to Rs 9,655 crore (estimate) as compared to Rs 8,005 crore in the same quarter a year ago. While its profit may surge by 18.6 per cent to Rs 1,391 crore (estimate) in Q2FY23 as against Rs 1,173 crore in Q2FY22.

Similarly, Bajaj Auto’s EBITDA (earnings before interest, taxes, depreciation, and amortization) may also come in double-digits, up by 21.8 per cent to Rs 1,580 crore (estimate) in Q2Fy23 versus Rs 1,297 crore in a year ago quarter. While margins may come to 16.4 per cent from 16.2 per cent YoY.

The automobile company may witness a volume growth of 0.6 per cent to 11,51,000 units in the July-September quarter of this fiscal and realisation to grow by 14.7 per cent YoY to 86382/unit, Zee Business research team said in its Bajaj Auto results Q2FY23 preview.

Bajaj Auto has yielded a return of 11 per cent so far in 2022 against a downfall of 1.55 per cent in the benchmark BSE Sensex. The 52-week range of Bajaj Auto stock is Rs 4,131.75 - Rs 3,027.05.

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