Bajaj Auto Q4 Preview: Brokerages see modest revenue growth amid single-digit volume uptick; PAT estimates mixed
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Here's what top brokerages recommended:
Motilal Oswal
Axis Securities
Tired of too many ads?
Remove Ads
Yes Securities
Equirus
Two-wheeler major Bajaj Auto will announce its earnings on Thursday where the company is expected to report a low single-digit revenue uptick of 2-3.5% in the quarter ended March 31, 2025, according to estimates given by four brokerages. The topline range is expected between Rs 11,705 crore and Rs 11,891 crore, the estimates said.Meanwhile, the net profit is pegged in the range of Rs 1,915 crore to Rs 1,993 crore. Three brokerages expect a growth up to 3% while one expects a decline of 1.1%.The estimates have been given by Motilal Oswal Financial Services (MOFSL), Axis Securities, Yes Securities and Equirus Securities.Most conservative revenue estimates are given by Equirus while MOFSL has the most bullish estimates among the brokerages. While Axis Securities is estimating a PAT decline, Yes sees a marginal growth while Equirus has highest net profit figures among its peers.The volumes are expected to rise in low single digits and investors should watch out for margins, volume outlook and export outlook.Bajaj Auto is expected to report a PAT of Rs 1,985 crore, marking a 2.5% YoY increase and a 6% QoQ decline. The company's sales may stand at Rs 11,891 crore, likely rising up 3.5% YoY but down 7% QoQ.The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) is pegged at Rs 2,375 crore, reflecting a 3% YoY growth and an 8% QoQ dip. Meanwhile, the EBITDA margin may come around 20%, down 10 bps YoY and 20 bps QoQ.The total volume is expected at 11,03,000 units, a 3.2% likely rise YoY but a 10% drop QoQ.'Total volumes during the quarter grew 3% YoY, supported by 3% growth in 2Ws and 5% in 3Ws. However, the increase was entirely driven by exports, which rose 19% YoY, offsetting a 7% YoY decline in domestic demand. ASP is expected to grow 3% QoQ led by improved mix, favorable currency and price increases,' MOFSL said.'We expect the impact of lower volumes (-10% QoQ) to be offset by improved mix (higher exports + higher Pulsar sales) and favorable currency QoQ. As a result, we expect margins to largely remain stable QoQ at 20%.' the brokerage said.The company's PAT is pegged around Rs 1,915 crore, reflecting a decline of 1.1% YoY and 9.2% QoQ. The revenue may stand at Rs 11,793 crore, likely up 3% YoY but down 8% QoQ.The EBITDA may rise by 2.2% YoY to Rs 2,357 crore, though it declined 9% QoQ. The EBITDA margin is likely to be reported at 20% for the quarter under review, down 10 bps YoY and 17 bps QoQ.Volumes may come in at 11,02,934 units, a 3.2% increase YoY but a 10% drop QoQ.'We expect total revenues to increase by 3% YoY, led by a 3% YoY increase in overall volumes and a mild decline in ASPs due to an inferior product mix. EBITDA margin is expected to decline by 10bps/17bps YoY due to Inferior Product Mix (higher entry level 2W and EVs). (PAT may vary due to accrual of PLI benefit),' this brokerage said.The company's net profit in Q4FY25 may come at 1,938 crore, showing a marginal increase of 0.1% YoY but an 8% decline QoQ. Revenue may stand at Rs 11,831 crore, up 3% YoY yet down 8% QoQ.EBITDA fell sharply to Rs 2,328 crore, representing a 41% drop YoY and a 48% decline QoQ.'Overall volumes grew 3.2% YoY/-9.9% QoQ at 1.1m units, while realizations are expected to be flat YoY/+2.6% QoQ at ~Rs107.3k/unit. This should result in revenue growth of 3% YoY/-7.6% QoQ at Rs 118.3b. We expect EBITDA margins to contract 40bp YoY/-50bp QoQ at 19.7% due to higher other expenses,' Yes said in its Q4 preview note.The PAT is seen around Rs 1,993 crore, reflecting a 3% YoY growth and 5% QoQ decline. The net sales came in at Rs 11,705 crore, up 2% YoY but down 9% QoQ.The EBITDA stood at Rs 2,376 crore, marking a 3% increase YoY and an 8% decline QoQ. The EBITDA margin improved to 20.3%, rising by 22 basis points YoY and 15 basis points QoQ.'Overall volumes are -10% /+ 3% QoQ/YoY while ASPs are expected to improve 1.5% qoq due to price hikes and better mix but will decline 1.3% yoy due to adverse product mix. We expect EBITDA/Vehicle to change by + 0.7%/ - 1.7% qoq/yoy due to change in ASPs,' .Key things to look for are margins, volumes outlook and outlook on export.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
21 minutes ago
- Time of India
Free water may soon be only for ‘poor' city areas
New Delhi: Delhi govt is reviewing AAP govt's flagship free water scheme, which provides 20,000 litres of water each month to each household, highly placed govt sources said. The subsidy may soon be available only in low-income family areas, they said. The move is being considered for streamlining resource allocation and reducing the financial burden on Delhi Jal Board . If this comes through, residents of relatively affluent areas will have to pay for water usage based on actual billing. AAP govt had announced the free water scheme in Delhi in Jan 2014 for all households with functional water meters. Consumers who used more than 20,000 litres a month were billed according to the regular water tariff. A senior official said govt wanted to give subsidy benefits only to the needy and deny it to those who could easily afford it, with the aim of reducing DJB's losses. The board's losses had increased from Rs 344 crore in 2019-'20 to Rs 1,196.2 crore in 2021-'22, while its debt was more than Rs 73,000 crore. The losses have mounted since then. The sources said that while a final decision was yet to be taken, the exercise to determine low-income areas would rely on MCD's colony classifications for paying property tax. Delhi's residential areas are included in categories 'A' to 'H'. 'A' represents affluent neighbourhoods; 'H' denotes low-income areas. A senior official said that the scheme could be devised in such a way that upscale colonies might not receive subsidies at all while the less privileged ones would qualify for the benefit. The water utility might include additional criteria, such as property dimensions, in its assessment. However, for this to happen, DJB needs to fix its billing system. "The company that looks after the billing system has said it doesn't want to work with govt anymore. So, we are in the process of engaging a new company after which a final decision will be taken," said a source. In 2019, AAP govt had told the Delhi assembly that around 20,000 litres of free water was provided to each household each month by using nearly Rs 400 crore, benefiting 5.3 lakh consumers. This was in response to a monitoring committee telling National Green Tribunal that the scheme was being misused by several housing societies. "We have seen people installing multiple water meters in a house going by the number of floors so that they can use free water," said an official. "Some even wash their cars using potable water, which is a waste of limited resources." As of now, if more than 20,000 litres and up to 30,000 litres is consumed, Rs 220 is levied as service charge and Rs 26 charged per kilolitre. Those consuming more than 30,000 litres have to pay Rs 293 as service charge and Rs 44 per kilolitre. Get the latest lifestyle updates on Times of India, along with Eid wishes , messages , and quotes !
Deccan Herald
22 minutes ago
- Deccan Herald
Centre eases rules for buying scientific equipment, consumables by R&D institutes
The financial limits for procuring goods using the limited tender enquiry (LTE) and advertised tender enquiry have been increased to Rs 1 crore from the existing Rs 50 lakh.
News18
22 minutes ago
- News18
MSRDC Proposes 10-Lane Upgrade For Mumbai-Pune Expressway To Ease Growing Traffic
Last Updated: The total estimated cost for the entire widening project is Rs 14,260 crore, with construction costs alone around Rs 8,440 crore The Maharashtra State Road Development Corporation (MSRDC) has announced a major upgrade to the Mumbai-Pune Expressway, proposing to expand it into a 10-lane superhighway. The move comes as a long-term solution to tackle increasing congestion on one of India's busiest and most expensive expressways. 'This is an upgrade from our earlier proposal to make it an eight-lane facility. The latest plan will cost around Rs 1,420 crore," said Anilkumar Gaikwad, MSRDC Vice-Chairman and Managing Director, on Friday. Gaikwad told The Times of India that the Detailed Project Report (DPR) is being finalised and will be submitted to the state government for approval. The Mumbai-Pune Expressway, India's first and oldest access-controlled expressway, was inaugurated in 2002 and stretches 94.6 km. Built by the MSRDC at an initial cost of about Rs 1.63 lakh crore, the expressway connects Mumbai with Pune — a key educational and industrial hub in Maharashtra. Currently, the expressway sees around 65,000 vehicles on weekdays and over 1 lakh on weekends. With traffic volume growing by nearly 5–6% each year, MSRDC believes that expanding the corridor is essential to keep pace with demand. Presently, a trip between the two cities takes about two hours under normal conditions, but weekend congestion often extends travel time by an hour. The proposed expansion is expected to reduce this delay significantly, offering smoother travel even during peak periods. The total estimated cost for the entire widening project is Rs 14,260 crore, with construction costs alone around Rs 8,440 crore. Interestingly, MSRDC plans to fund the project through toll collections instead of relying on government funds. 'We will bank on toll collection," Gaikwad said, adding that the financing model — either Build-Operate-Transfer (BOT) or annuity — will be decided later. The current toll agreement is valid until 2045, and MSRDC may seek an extension if the expansion is approved. If implemented, the 10-lane upgrade could transform the expressway into a faster and more efficient route, easing pressure on one of India's most vital road links. First Published:
