Chip crunch, high RM to dent Bajaj Auto's margins in Q1FY23, say analysts

Bajaj Auto Q1 preview: Supply-side bottlenecks, chip shortage, commodity inflation, and negative operating leverage are likely to weaken Bajaj Auto’s June quarter results (Q1FY23). Analysts, on average, expect the revenue to fall up to 7 per cent quarter-on-quarter (QoQ) to Rs 7,416 crore in Q1FY23. The company is slated to report its June quarter numbers on Tuesday, July 26.

That said, higher input prices and weak sales is expected to dent margin trajectory in the range of 130 to 140 basis points (bps) QoQ to 15.8 per cent from 17.1 per cent. However, price hikes across select variants, analysts believe,