Bajaj Auto Q2 profit seen down 4%

Bajaj Auto Q2 profit seen down 4% at Rs 1,082 Cr

Operating profit is seen falling 5 percent year-on-year to Rs 1,228 Cr and margin may contract by 270 basis points to 18.6 percent mainly on the back of higher commodity prices.

Bajaj auto’s second quarter profit is seen falling 4 percent to Rs 1,082.25 Cr compared with Rs 1,122 Cr in same quarter last fiscal due to weak operational performance.

Analysts said Q2 is expected to be relatively better quarter in terms of sales but volumes may be under pressure.

Net sales during the quarter are expected to increase 8 percent to Rs 6,556.14 Cr year-on-year, Sales volume increased 3.8 percent year-on-year in Q2 while export market saw some positive traction during the quarter, up 6.4 percent YoY. Analysts expect realizations to increase 4 percent in Q2.Among motorcycles, share of entry and premium has risen but executive segment has seen a decline, analysts said. Operating profit is seen falling 5 percent year-on-year to Rs 1,228 Cr and margin may contract by 270 basis points to 18.7 percent mainly on the back of higher commodity prices.