Bajaj Auto Q4 Review - Margin Resilience Driven By Exports: ICICI Securities

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ICICI Securities Report

Bajaj Auto Ltd.’s Q4 FY21 margins were a beat on consensus expectations at 17.7% (down 65 basis points YoY).

The company’s margin resilience was driven by -

1. rise in export mix (up 340bps YoY at 46.4%) and
2. increased share of Pulsar-125cc has led to superior domestic motorcycle mix (share up 13.7% to 26.3%).

Management’s focus on building on electric vehicles starting with Chetak is a long-term positive.

They believe existing incumbents are well placed in terms of technology/distribution and brand to handle the potential entry of private equity-backed start-up companies in two-wheelers.

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