- 25 Jan 2024
- ICICI Securities
POSTED ROBUST PERFORMANCE IN Q3FY24, BEATING EXPECTATIONS
BAJAJ-AUTO - 8851 Change: 368.50 (4.34 %)News: Total operating income for the quarter came in at ₹12,114 crore, up 30% YoY amidst 22% YoY growth in volumes at 12 lakh units (2-W volumes at 10.4 lakh units while 3-W volumes at 1.6 lakh units). EBITDA for the quarter came in at ₹2,430 crore with corresponding EBITDA margins at 20.1% (up 30 bps QoQ). PAT in Q3FY24 stood at ₹2,042 crore (up 37% YoY).
Views: Margin performance at the company came in healthy tracking flattish gross margins performance amidst adverse product mix (lower share of 3-W in total sales volume; at 13% down 300 bps QoQ). Management commentary was positive around the Chetak brand in E-mobility space as well as Triumph bikes in the premium category. Company however expects exports to pick up slow and steady amidst its key markets still grappling with shortage of dollar coupled with some uncertainty involving sea routes and container availability. The company now trades at a premium valuation to its historical averages supported by heathy buyback announcement in the recent past (₹ 4,000 crore buyback @₹ 10,000/share).
Impact: Neutral