Bajaj Auto - Q1FY22 First Cut - ICICI Direct

(CMP: Rs. 3,962; MCap: Rs. 1.15 lakh crore)

Bajaj Auto (BAL) reported relatively steady Q1FY22 performance under the circumstances, with key readings coming in broadly in line with our estimates.

Q1FY22 Earnings Summary

- Net revenues came in at Rs. 7,386 crore (down 14.1% QoQ; I-Direct estimate - Rs. 7,394 crore). Blended ASPs for the quarter stood at Rs. 73,419/unit, flat QoQ. Total volumes for the quarter were at 10.06 lakh units, down 14.0% QoQ (2-W down 14.2% QoQ, 3-W down 12.6% QoQ)

- Reported EBITDA in Q1FY22 was at Rs. 1,120 crore, with EBITDA margins coming in at 15.2% (down 257 bps QoQ) - against our estimate of 15.9%. Gross margins declined by ~110 bps QoQ and employee costs rose ~130 bps sequentially on percentage of sales basis, slightly higher than anticipated

- Consequent reported PAT declined by 20.3% QoQ to Rs. 1,061 crore vs. our expectation of Rs. 1,093 crore

- Cash and cash equivalents as of Q1FY22 stood at ? 19,097 crore vs. ? 17,689 crore as of FY21

- BAL informed that it has set up a wholly-owned subsidiary for manufacturing electric and hybrid vehicles in the 2-W, 3-W and light 4-W categories

We would be coming out with a detailed report soon.

Shares of BAJAJ AUTO LTD. was last trading in BSE at Rs. 3852.6 as compared to the previous close of Rs. 3904.05. The total number of shares traded during the day was 45468 in over 6052 trades.

The stock hit an intraday high of Rs. 4012.8 and intraday low of 3786.4. The net turnover during the day was Rs. 178300357.

Source : Equity Bulls

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