Bajaj Auto Q4 Preview: Analysts fear Ebitda margin fall despite price hike

At the bourses, the stock of Bajaj Auto has outperformed both, Nifty50 and Nifty Auto indices, on the National Stock Exchange on a year-to-date (YTD) basis, ACE Equity data show

Two-wheeler manufacturer Bajaj Auto is geared up to report its March quarter results for financial year 2020-21 (Q4FY21) on Thursday, April 29, amid expectations of a solid growth in revenue and sales volume. However, the company’s Ebitda margin could come under pressure due to higher commodity prices and lower product mix on a quarterly basis.

The commodity prices, over the past six months, have risen sharply - aluminum (over 26 per cent), copper (32 per cent), crude (55 per cent), and steel (55 per cent). In Q4FY21, global brokerage Nomura’s commodity cost index rose nearly 350bps. 

“The current price hikes of 2-3