Bajaj Auto Q1 preview: Higher other income to cushion decline in net profit

For the period under review, the stock price of Bajaj Auto leaped 39.5 per cent, as against 18.4 per cent rise in the Sensex. In comparison, the S&P BSE Auto index surged 42 per cent.

With a volume decline of over 60 per cent year-on-year, analysts expect Bajaj Auto’s margins to remain under pressure for the April-June quarter earnings of financial year 2020-21 (Q1FY21). However, the decline in net profit could be cushioned by higher other income, analysts say.  

The two-wheeler maker is set to report its Q1FY21 numbers on Wednesday, July 22. During the quarter under review, the Pune-headquartered firm outran the benchmark S&P BSE Sensex but underperformed the sectoral Auto index, ACE Equity data show. For the period under review, the stock price of Bajaj Auto leaped 39.5 per cent, as against 18.4 per