Bajaj Auto’s August 2019 sales declined 11% y-o-y to ~390k units (in-line). Domestic volumes declined ~19% y-o-y to 208.1k units (versus estimate of 221.5k units), while exports grew 0.3% y-o-y to ~182k units (versus estimate of 177.5k units).
Overall 2W volumes declined 10.4% y-o-y to 325.3k units. Domestic motorcycle dispatches declined 21% y-o-y to ~173k units. Motorcycle exports grew 5.4% y-o-y to 152.3k units. Commenting on the month’s performance, Rakesh Sharma, executive director of Bajaj Auto, said: “Decline in growth rate has been more severe in August because a large part of the country was under heavy rains, which must have dampened sales.”
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3W volumes declined 12.7% y-o-y to 64.7k units (v/s est. 59k units). Domestic volumes declined ~6% y-o-y to 35k units and exports volume declined ~20% y-o-y to 29.6k units due to weak sales in Egypt. The company has reported improved walk-ins, inquiries and retail sales since the last week of Aug’19. The stock trades at 16.7x/15.3x FY20E/FY21E consol. EPS. Maintain ‘Buy’ rating on the stock.
