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These are the expectations from Bajaj Auto

Analysts polled by CNBC-TV18 estimate that the revenue for Bajaj Auto is going to grow by just 2.3 percent at Rs 7,560, down from Rs 7,386 in the corresponding period last year.

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By CNBCTV18.com Jul 25, 2022 7:33:49 PM IST (Updated)

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Bajaj Auto, one of India’s largest automobile manufacturers, is all set to report its financial results for the April-June quarter on July 26. Due to the ongoing chip shortage that affected volumes for the company in the first quarter of the financial year 2023 (Q1FY23) for premium motorcycles and three-wheelers, analysts polled by CNBC-TV18 estimate that the revenue for Bajaj Auto is going to grow by just 2.3 percent at Rs 7,560, down from Rs 7,386 in the corresponding period last year.

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The profit after tax — an estimate that shows the actual money that a company is making in that operating period — could decline at 1.1 percent YoY and is pegged at Rs 1,049 crore.
Analysts expect that the earnings before interest, taxes, depreciation, and amortization (EBITDA) is going to go up by 6.7 percent to Rs 1,195, and the operating margin — indicating the amount of profit the company has left before figuring in the expenses of taxes and interest — is going to be at 15.6 percent as compared to 15.2 percent in Q1FY23.
Factors to watch
As the two-wheeler domestic market has been under pressure and even exports were quite subdued, the volume for the company sales in Q1FY23 fell 7 percent to 9.34 lakh units as compared to 10.06 lakh units year-on-year. Primarily led by a 35 percent quarter-on-quarter decline in three-wheeler exports, due to the import ban in Eqypt.
There was also a 14 QoQ decline in the domestic three-wheeler segment, so analysts expect that overall, the margins and topline will look subdued. The margins are expected to decline at 130 basis points QoQ at 15.8 percent.
Shares of Bajaj Auto closed at Rs 4,024, a 0.7 percent decline from the previous close on the BSE. The stock has gained over 22 percent in the year so far.

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