Bajaj Auto Q1 preview: Adverse product mix, discounts to weigh on profit

The key issues to watch out for would be any update on 2W demand outlook from urban and rural areas, price increase in domestic markets across segments, and update on EV strategy

Bajaj Auto will declare its June quarter results on Friday. And, although the company has reported a rise in volumes in an otherwise subdued quarter for auto firms, analysts expect the inferior product mix and higher discounting to drag down the company's profit.

According to data, Bajaj Auto's overall volume grew 1.7 per cent on a year-on-year (YoY) basis to 12,47,174 units in Q1FY20. Total motorcycle volume increased 4 per cent YoY, while three-wheeler volume declined 20 per cent YoY.

Analysts at Motilal Oswal said the volume growth and a 0.4 per cent increase in realization to Rs 60,718 per unit, would