A decline in sales volume could drag down Bajaj Auto’s fourth-quarter revenue by as much as 11 per cent on a sequential basis, according to analysts.
Brokerage, Sharekhan, expects margins to contract by 72 bps. However, revenue is expected to rise on a YoY basis, led by increase in selling price.
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“EBITDA and EBITDA margins are expected to fall QoQ on lower operating leverage and almost flat RM cost assumption. YoY increase will be led by higher sales volumes, lower YoY RM impact, and better product mix (higher share) of 3W and higher CC vehicles). PAT to largely follow the EBITDA growth,” Axis Securities said.
In Q3 FY23, Bajaj Auto posted a higher-than-expected third-quarter profit of ₹1,491.42 crore up by 22.8 per cent YoY. However, revenue from operations was up merely 3 per cent YoY to ₹9,315.14 crore.