Bajaj Auto Q1 FY 19 Concall Highlights: * Arihant Capital*

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Bajaj Auto Q1 FY 19 Concall Highlights:

* Arihant Capital*

• CT and Platina were the main growth drivers; however, Bajaj is looking to gain market share. Lot of discount are being given which is affecting the realisation.
• Bajaj main focus is to gain market share in the M1 segment currently market share stands at 33.7%, target is to achieve 45% in  the next 2-3 years.
• As the festive season kicks in demand is expected to rise.
• Demand is expected to come from rural area due to the increase in MSP.
• Bajaj is expecting a topline growth of 15% CAGR for 2-3 years. Majority of the growth is expected to come from M segment. As this is a low margin segment overall EBITDA will be under pressure.
• Cost pressure to continue in Q2 as well.
• Margins expansion will only come the premium segment motorcycle.
• As of now bajaj is focusing on gaining market share, so the margins will remain under pressure.
• Export markets are doing well. Bajaj enjoy’s a 50% market share in Nigeria.
• Capex to be around 250 to 300 crore for FY19.
• Company’s exports target is 1.9Mn units for FY19.
• Company targets to achieve 4.8Mn units in FY19.