Bajaj Auto Q2 Review - Resilient Performance Amid Headwinds: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Bajaj Auto Ltd.’s Q2 FY22 Ebitda margin was above consensus expectations at 16% (up 83 basis points QoQ). The margin recovery was led by operating leverage (volumes up 16% QoQ) even as gross margins declined ~65 bps QoQ. Remissions of Duties and Taxes on Exported Products (export incentive scheme) benefits amounted for ~150 bps improvement. Bajaj Auto remains a play on robust export demand with unique tailwinds in H2 FY22 (e.g. forex depreciation, RoDTEP incentives) which could aid margins amid the inflationary input cost environment. New model launches (H2 FY22 onwards) are likely to aid domestic growth while most export markets (led by Latin America and Africa) are likely to remain healthy as many of these economies benefit from commodity inflation..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bajaj Auto Q2 Review - Resilient Performance Amid Headwinds: ICICI Securities