Bajaj Auto: Muted Q2 earnings expected

Bajaj Auto will be reporting its Q2 earnings today. The stock has underperformed the sector this year and the stock is down 5 percent in 2020.

The reason for this has been the export market which has been struggling quite a bit. Also, the Merchandise Exports from India Scheme (MEIS) incentive have been withdrawn which is expected to affect the numbers. Hence it is expected to be a muted quarter.

Revenues are expected to fall about 6 percent year-on-year (YoY). Volumes have bounced back quarter-on-quarter (QoQ) very sharply, but YoY the volumes will be down about 10 percent.