Bajaj may be in for a rough ride

Primary trigger for weak performance is a 11% drop in motorcycle sales volume for April-June quarter

The country's leading motorcycle maker, Bajaj Auto, is staring at a year-on-year decline of at least 10 per cent in revenue and profitability in the first quarter of FY18, that is April-June. The primary trigger for this weak performance is a 11 per cent drop in motorcycle sales volume for April-June quarter. The commercial vehicles business, primarily three-wheelers, saw an eight per cent drop in volume for the period. 

In addition to a sales volume decline, April-June quarter margin will also see impact from increased raw material prices. Benign commodity prices and increase in revenue had helped most vehicle companies