Bajaj Auto share was trading flat ahead of its March quarter earnings to be announced on Thursday. At 1:28 hours, Bajaj Auto share was trading at Rs 3,883.05, down 0.19 per cent on the BSE.
On a year-to-date (YTD) basis, the stock has gained around 13 per cent against a rise of 7 per cent in the Nifty Auto index.
According to Kotak Institutional Equities, volumes during the quarter increased by 18 per cent YoY led by 24 per cent YoY increase in export motorcycle volumes, 21 per cent yearly increase in domestic motorcycle volumes offset by 12 per cent YoY decline in three-wheeler segment volumes in the quarter ended March 2021. It expects revenues to increase by 19 per cent YoY and EBITDA (earnings before interest, tax, depreciation and amortisation) by 15 per cent YoY.
"We expect sales volumes to grow 18 per cent YoY to 1.16 million in Q4FY21 but tumble 10.5 per cent QoQ due to leaner exports and fresh Covid-19-induced restrictions. While EBITDA growth is seen 19 per cent YoY to Rs 1,489.6 crore, margins may decline 34 bps YoY and 144 bps QoQ to 18 per cent," said IIFL Securities.
Prabhudas Lilladher expects revenue to grow around 22 per cent YoY, and EBITDA to grow 19 per cent YoY. The brokerage expects margins to decline 40 bps YoY to 18 per cent due to higher raw material prices.
For FY21, the company reported sales of 39,72,914 units, down 14 per cent from 46,15,212 units in FY20. Domestic sales were down 21 per cent to 19,18,667 units as compared with 24,44,107 units in the 2019-20 financial year.