Bajaj Auto Q4 results preview: Revenue, net profit expected to grow 26% YoY; margin to improve

Bajaj Auto Q4 results preview: Bajaj Auto, the two-wheeler and three-wheeler manufacturer, is expected to report strong earnings for the quarter ended March 2024 driven by robust volume growth, better realisations and higher average selling price (ASP). Bajaj Auto Q4 results are scheduled to be released on April 18.

The company’s robust volume growth in the fourth quarter of FY24 is expected to aid revenues, while the margin may expand on account of improved product mix, lower input costs and operating leverage benefits.

Bajaj Auto’s sales volume in Q4FY24 is likely to have grown 24.6% to 10,68,576 units from 857,788 units in the year-ago period.

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Bajaj Auto is expected to report a net profit of ₹1,805 crore in Q4, registering a growth of 26% from ₹1,432.9 crore in the same period last year, as per the average estimates of five brokerages.

The company’s revenue for the quarter ended March 2024 is also estimated to grow nearly 26% to ₹11,200 crore from ₹8,904.7 crore in the year-ago quarter.

“Expect flattish ASP on YoY basis as the higher mix of the premium two-wheeler and Electric Vehicle (EV) segments to be largely offset by the lower mix of the Three-wheeler segment. Expect EBITDA margin to remain flat QoQ as we expect favourable product mix and moderating RM inflation to largely offset negative operating leverage,” said JM Financial.

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At the operational level, earnings before interest, depreciation, tax and amortization (EBITDA) in Q4FY24 is likely to increase 26.4% to ₹2,170 crore from ₹1,716.6 crore, while EBITDA margin is expected to improve by 55 basis points (bps) to 19.85% from 19.3%, YoY, as per estimates.

Nuvama Institutional Equities believes strong volume performance and better realisations shall support revenue growth YoY. EBITDA margin shall expand on better scale and mix. 

“Bajaj Auto is witnessing market share gains in the domestic segment, strong volume performance in exports and surge in EV volumes. We anticipate healthy demand/margin outlook and also expect valuation multiples to remain elevated due to expected IPOs of Ola/Ather, which is leading to re-rating of valuations for EV businesses,” Nuvama Equities said.

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Bajaj continues to enjoy the benefit of a rich mix in domestic motorcycles, while recovery in export markets is gradual. Key variables to watch are e-mobility initiatives and demand outlook, analysts said.

Bajaj Auto share price has given decent returns as the stock is up more than 31% year-to-date (YTD). Bajaj Auto shares have gained 108% in the past one year.

On Tuesday, Bajaj Auto shares ended 0.86% lower at ₹8,918.70 apiece on the BSE.

Read all Q4 results here