ECONOMY

Bajaj Auto Q1 – Raw Material Cost Inflation, Negative Operating Leverage Dent Margins: Prabhudas Lilladher

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.

Bajaj Auto Ltd.’s Q1 FY22 results were impacted by lower scale of operations and raw material cost inflation.

Gross margins contracted 590 basis point YoY/ 110bp QoQ, yet better product mix led by higher share of exports and higher U.S. dollar realisations partially offset the raw material dent.

Also launch of Pulsar helped Bajaj Auto to gain market share in 125cc segment (up 300bps in Q1 FY22), thereby aiding domestic motorcycle segment.

Market share stood at 19.7% in Q1 FY22 versus 18.1% in FY21.

Management remained cautious on margin outlook amid raw material inflation.

Click on the attachment to read the full report:

Prabhudas Lilladher Bajaj Auto Q1FY22 Result Update.pdf

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