Higher commodity prices coupled with destocking in the runup to the GST rollout during the second half of June are likely to dent bottomline figures of Bajaj Auto in Q1FY18. The company is scheduled to announce its results on Thursday.
Brokerage firm Motilal Oswal sees 9.7 per cent year-on-year fall in net profit at Rs 883.20 crore for the quarter under review. It had reported net profit of Rs 978.40 crore in the same quarter last year. Net sales of the company may fall 8.90 per cent YoY to Rs 5233.50 crore during the quarter under review.
In the upcoming quarterly results, one should look for an update on demand for new launches, channel inventory post BS-IV and outlook for FY18. Export demand outlook and pricing in key exports markets along with dealer compensation cost for ITC (input tax credit) loss due to GST and comments on 3W demand recovery in domestic market should also be zeroed on.
According to KR Choksey Research, Bajaj Auto may post 8.9 per cent YoY in revenue on the back of fall in volumes by 9.5 per cent. However, gross blended realisation to improve by 1.5 per cent YoY driven by refreshment of Pulsar and launch of Dominor.