Bajaj Auto Q1 PAT seen 2.4% up at Rs 735 crore

MUMBAI: Two wheeler major Bajaj Auto will be announcing its first quarter results tomorrow. According to ET Now poll, the company's net profit is likely to grow to Rs 735 crore, up 2.4 per cent, against a net profit of Rs 718 crore in the corresponding quarter last fiscal.

Revenues for the quarter are seen at Rs 4,850 crore, down 0.3 per cent, as compared to Rs 4,866 crore, year-on-year (YoY).

Q1 EBITDA is seen at Rs 900 crore, down 4.7 per cent, from Rs 944 crore, Y-o-Y. Margins for the June quarter are likely to dip to 18.5 per cent against 19.4 per cent, YoY.

According to analysts, volume decline of 9 per cent will be impacting revenues in Q1. Meanwhile, realisations are likely to improve by 5-6 per cent Y-o-Y. Higher export realizations and price hike are likely to improve margins.

Favorable forex movement can lead to a positive surprise for the company.

Key factors to watch

Update on current retail demand environment, channel inventory

FY14 volume and margin guidance, new launches,

Update on forex hedges on exports for FY14/FY15