Bajaj Auto - Q1FY14 Result Update - IIFL

- Revenues at Rs49.1bn higher by 1% yoy; exactly in line with our estimates

- Blended realizations improved 12.5% yoy driven by 26% surge in export realizations. Better product mix (higher share of 3W's) and currency benefits enabled this surge

- Total volumes were down by 9.2% yoy. Domestic and export volumes degrew by 7% yoy and 13% yoy respectively on back of poor motorcycle volumes

- OPM at 18.5% was higher by 84bps qoq helped by the sharp gross margin expansion. Other expenses were higher on account of notional forex loss of Rs960mn

- PAT at Rs7.4bn was up a moderate 2.7% yoy

- Maintain our rating of Market Performer with a revised 9-month price target of Rs2,006.

Source : Equity Bulls

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