Bajaj Auto– net sales to grow by 62.9% YoY and 18.7% QoQ to Rs 34.3bn.

Bajaj Auto Ltd (BAL)– Q3FY10 result expectation

We expect BAL to report strong operating performance backed by volume growth, stable pricing and operating leverage. We are expecting EBIDTA margin to expand by 530 bps YoY driven by higher volume growth. However, despite higher QoQ volumes, we expects EBIDTA margin to decline by 220 bps QoQ due to higher RM cost. We do not rule out positive surprises on the EBIDA margins front.

n    We expect net sales to grow by 62.9% YoY and 18.7% QoQ to Rs 34.3bn.

n    We expect EBITDA to increase by 122.0% YoY and 6.7% QoQ to Rs 6.8bn.

n    EBIDTA margins are expected to improve by 530 bps YoY but decline by 220 bps QoQ to 19.8%.

n    We expect APAT to increase by 129.9% YoY and 9.7% QoQ to Rs  4.8bn