Q1FY22 Result Update - Bajaj Auto - ICICI Direct

BAL reported steady Q1FY22 results under the circumstances.

- Net sales were down 14% QoQ to Rs. 7,386 crore, decline being volume-led

- EBITDA margins fell 257 bps QoQ to 15.2% on higher RM, employee costs

- Consequent standalone PAT at Rs. 1,061 crore was lower by 20.3% QoQ

Key triggers for future price performance

- We expect volume, net sales CAGR of 13.3%, 19.4% over FY21-23E (2-W CAGR 12.4%, 3-W CAGR 21.4%) aided by low base, pent-up demand

- Under-recovery of cost increases, elevated employee costs to pressurise margins over medium term; margins seen stabilising ~16% by FY23E

- Revised dividend distribution policy (up to 90% payout for surplus funds in excess of Rs. 15,000 crore) to ensure high dividend yield in future

- Well charted transition strategy encompassing switch to electrification

For details, click on the link below: Link to the report

Shares of BAJAJ AUTO LTD. was last trading in BSE at Rs. 3846.75 as compared to the previous close of Rs. 3852.6. The total number of shares traded during the day was 18168 in over 2679 trades.

The stock hit an intraday high of Rs. 3924.8 and intraday low of 3826.45. The net turnover during the day was Rs. 70220700.

Source : Equity Bulls

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