Rama Krishna Sangem
Bajaj Auto which recently launched its revolutionary 125 CC bike Freedom CNG is betting big on the new models of two wheeler market. This is going to reflect in its first quarter results Q1-25 which will be announced on July 16, Tuesday. The market analysts expect a decent 12 pc or above growth for the company. If the predictions are right, then Bajaj Auto is certain to regain its 2 wheeler market leader stature once again.
Bajaj Auto, the two-wheeler automobile company, is set to announce its June quarter (Q1FY25) results on Tuesday, July 16. Analysts anticipate robust double-digit revenue growth driven by ongoing volume recovery, particularly in rural areas. The growth, analysts believe, is expected to be accompanied by considerable margin improvement year-on-year (Y-o-Y).
Ahead of the earnings, Bajaj Auto’s stock was buzzing in trade. The stock surged as much as 3.27 per cent to reach an intraday high of Rs 9,737.50 per share on July 15. However, at 2:03 PM, shares were off highs and were trading 2.69 per cent higher at Rs 681.85 per share. In comparison, the BSE Sensex was up 0.31 per cent at 80,768.13 levels.
Earlier this month, Bajaj Auto introduced India’s first CNG bike, the Freedom 125. The new model features a 125cc air-cooled single-cylinder engine that can operate on both CNG and petrol. It includes a primary 2 kg CNG tank and a secondary 2-litre petrol tank for extended range.
What Nomura thknks
Analysts at Nomura, a Japan-based brokerage, expect revenue to increase 15 per cent Y-o-Y led by 7 per cent Y-o-Y increase in volumes. Earnings before interest, taxes, depreciation and amortisation (Ebitda) margin to remain stable Q-o-Q benefitting from production-linked incentive (PLI) incentives, operating leverage
Therefore, analysts expect Bajaj Auto to post a net profit of Rs 2,025.4 crore; revenue of Rs 11,853 crore; Ebitda at Rs 2,401 crore; and Ebitda margin at 20.3 per cent
Nuvama Institutional Equities’ view
Nuvama Institutional Equities analysts anticipate that year-on-year revenue growth will be bolstered by increased volume and improved realisation. They predict an expansion in Ebitda margin due to enhanced net pricing and a favourable product mix, with a reduced proportion of 100cc models. Key areas of interest, analysts said, include developments in CNG/E-mobility initiatives and the outlook on demand.
As a result, analysts project a profit of Rs 1,907.3 crore, with revenue expected to reach Rs 11,708.9 crore and Ebitda to come in at Rs 2,274.3 crore.
