Bajaj Auto Ltd

- On page 14, it is mentioned that the financing subsidiary's application is with the RBI and currently undergoing an engagement and diligence process. - There was a recent call for information from RBI, with a submission made by the company. - No explicit mention of new fundraising through debt or equity in the transcript. - The company has substantial cash reserves (around INR17,500 crores at end of March) and recently paid significant dividends and completed share buyback. - Overall, no indication of immediate or planned new fundraising through debt or equity was disclosed in this session.

- Bajaj Auto spent about INR 1,000 crores on capex across Bajaj Auto and Chetak Technology entities. - Investments focused on new capacity, particularly the new Chakan 2 plant in Pune set up for the upcoming rollout of Triumph motorcycles. - Significant investments made behind the EV (electric vehicle) 2-wheeler business to expand product development, manufacturing, and go-to-market network. - Additional strategic investments have been made to onboard multiple supply chain partners to reduce single-source dependency and drive supply security. - The company is preparing for future launches, including electric 3-wheelers, with a cautious approach ensuring customer satisfaction before expanding market invasion. Overall, Bajaj Auto is making substantial ongoing and future investments to support capacity expansion, EV growth, and supply chain robustness.

- Optimistic about FY’24 delivery with potential for new records if export trading conditions improve. - Industry growth expected at 6% to 8% in the next few quarters, driven mainly by 125cc+ segment growth. - Domestic motorcycle industry seeing true growth post-COVID, with retail sales and registrations improving. - Export volumes currently down due to challenges but poised for surge once currency availability and trading conditions improve. - Electric 3-wheeler and Chetak electric scooter are in scale-up phase, targeting 10,000 units for Chetak by June. - Innovation focused on the top half of the demand pyramid (80% targeting premium segments). - Up-trading trend observed as consumers opt for better-value bikes amid improving income certainty. - Ability to build stock for exports will increase with better foreign exchange availability, enabling volume growth.

- EBITDA margin improvements are expected to be modest as the company aims to sustain profitability while competitively investing behind the business. - Pricing actions taken recently cover inflationary costs and regulatory compliance, but commodity price trends remain uncertain. - Mix improvements, especially from premium motorcycles and 3-wheelers, have driven margin gains; this richer product mix could continue to improve margin per unit. - Export markets are challenging but expected to recover gradually, potentially improving operating leverage as demand grows. - Domestic growth driven by the higher end of the demand pyramid (125cc and above) signals potential for better realizations and earnings. - Overall, while volume growth may be moderate, the focus on premium products and stable pricing supports stable or modestly improved operating margins and profit growth. - The company is cautious but hopeful about near-term earnings growth amid inflation and foreign exchange uncertainties.

- The transcript on page 19 of the document does not explicitly mention the current or expected order book or pending orders for Bajaj Auto Limited. - However, on earlier pages, it is noted that the export pipeline inventory is currently quite low as exports have been trailing retail sales for about 15 months. - The company has systematically downsized stock and covers are low. - There is an appetite to rebuild inventory as soon as trading conditions, particularly foreign exchange availability, improve. - Inventory requirements vary across countries—from 4 weeks in Bangladesh to 4-5 months in countries like Bolivia and Ecuador. - Overall, there is readiness and positive outlook to normalize pipeline inventories in line with improving demand.