Pune-based Bajaj Auto Limited will announce its earnings report for the second quarter of FY25 on October 16. Anticipation surrounds the release, with expectations of strong sales growth, primarily due to increased volumes and a diverse product offering. For those looking to buy shares online, the earnings report could offer vital insights.
Expected revenue and profit surge
Analysts from a poll of eight brokerage firms forecasted a remarkable 23% year-on-year rise in revenue, reaching ₹13,266 crore. Net profit is projected to increase by 21% to ₹2,227 crore, up from ₹1,836 crore in the same quarter of the previous fiscal year. The estimates vary slightly among firms, indicating that any surprises—positive or negative—could significantly impact the stock price.
Analyst forecasts:
- Prabhudas Lilladher: Net Profit: ₹2,293 crore | Revenue: ₹13,240 crore
- Yes Securities: Net Profit: ₹2,275 crore | Revenue: ₹13,419 crore
- Nuvama Institutional Equities: Net Profit: ₹2,266 crore | Revenue: ₹13,488 crore
- Axis Securities: Net Profit: ₹2,246 crore | Revenue: ₹13,336 crore
- Sharekhan by BNP Paribas: Net Profit: ₹2,228 crore | Revenue: ₹13,353 crore
- Phillip Capital: Net Profit: ₹2,192 crore | Revenue: ₹13,215 crore
- Elara Capital: Net Profit: ₹2,159 crore | Revenue: ₹12,990 crore
- Motilal Oswal: Net Profit: ₹2,157 crore | Revenue: ₹13,089 crore
- Average: Net Profit: ₹2,227 crore | Revenue: ₹13,266 crore
Key drivers of earnings growth
Bajaj Auto’s earnings are likely to be driven by several factors:
- Strong demand: The two-wheeler segment recorded a 16% year-on-year increase in volumes, aided by a slight rise in average selling prices (ASPs).
- Diverse product range: The company has launched multiple new models in the past year, which are expected to contribute to growth. The Pulsar, launched in May 2024, is a significant addition to the lineup.
- Improved margins: Analysts anticipate an improvement in EBITDA margins of about 52 basis points year-on-year due to a richer product mix and effective cost control.
What to monitor in the upcoming report?
Investors should pay attention to the following aspects:
- Demand forecasts in both domestic and international markets.
- Progress on CNG and electric mobility initiatives.
- Updates on the product launch pipeline and raw material costs.
Bajaj Auto shares recently closed at ₹11,921, up 0.2% from the previous day. The stock has surged over 30% in the past six months, making it an attractive option for those looking to buy shares online.
Key takeaways
- Bajaj Auto's earnings report is expected on October 16.
- Revenue is forecasted to rise by 23% to ₹13,266 crore.
- Net profit is expected to increase by 21% to ₹2,227 crore.
- Strong demand and product diversity are key growth drivers.
- Investors should watch market demand and product launches closely.
