Bajaj Auto (BAL) delivered muted Q1FY16 performance with operating margins and profit coming below our as well as street's estimates. Its revenues/EBIDTA/PAT grew 7%/15%/29% YoY and 18.4%/37%/64% QoQ to Rs 56bn/11.4bn/10.1bn as against our estimate of Rs 61.3bn/12.7bn/9.9bn respectively. Its volume rose 2.5%YoY/29.4%QoQ to 1mn units. Its realization/vehicle improved by 4.6% YoY, which is much lower than estimates, despite higher export contribution, favourable currency and higher 3W contribution. Management cited price rationalization and product mix in overseas markets as key reason behind lower ASP.