Despite tailwinds, margins to remain under pressure for Bajaj Auto

Rising exports, price hike, improving mix not enough to offset costs

Led by robust growth in volumes, higher realisations, and cost-control efforts, Bajaj Auto’s March quarter operational performance was in line with Street expectations. Its volume growth of 18 per cent YoY was largely due to the 24 per cent jump in export sales, even as the domestic market was struggling to keep pace.
 
While both commercial vehicles (three-wheelers) and motorcycles contributed to growth in exports, sales growth in the domestic segment was confined to motorcycles. Given the fall in intra-city transport since the start of the pandemic, commercial vehicle sales remain in a downward trajectory; sales fell 38 per