Any current/future new fundraising through debt or equity?

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.

Future growth expectations in sales/revenue/volumes?

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

Future growth expectations in earnings/operating earnings/profits/EPS?

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

Current/ Expected Orderbook/ Pending Orders?

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

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Bajaj Auto LtdQ1 FY23Automobiles

Bajaj Auto Ltd Q1 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹9,806P/E: 26.9Market Cap: ₹2.9L CrSector: Automobiles

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

→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.

Margin guidance

Category 3

→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.

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Fundraise plans

→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.

Order book

→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.

Capex plans

Yes

- 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.

How does Bajaj Auto Ltd rank vs peers in Automobiles?

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1Bajaj Auto Ltd

Rev 4Mar 3

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