- 26 Apr 2023
- ICICIdirect Research
BAJAJ AUTO REPORTS HEALTHY PERFORMANCE IN Q4FY23
BAJAJ-AUTO - 8483 Change: 156.50 (1.88 %)News: Total operating income for the quarter came in at Rs 8,905 crore, down 4.4% QoQ. Blended ASPs for the quarter were at Rs 1 lakh/unit, up 9.4% QoQ. Reported EBITDA in Q4FY23 was at Rs 1,717 crore, with EBITDA margins coming in at 19.3%, up 20 bps QoQ. Consequent reported PAT was down 4% QoQ to Rs 1,433 crore. The company recommended a dividend of ~Rs 140 per share for FY23 with record date for the same set as June 30, 2023
View: The Q4FY23 performance at Bajaj Auto was ahead of our estimates primarily tracking beat on margins and ASP’s. Margin beat was on account of higher than anticipated gross margin expansion, which was at 83 bps QoQ against our estimate of ~40 bps QoQ with ASPs beat being largely attributable to better product mix. On the export market front, the company remained cautiously optimistic especially with respect to dollar availability and expect steady improvement, going forward. The management commentary was encouraging on launch of its own E-3W near the month end and scaling up of Chetak production run-rate to 10,000 units per month from June, 23 onwards
Impact: Positive