Bajaj Auto (BAL) delivered decent Q1FY17 performance with operating margins and EBIDTA coming in line with our estimates. Its revenues/EBIDTA/adj PAT rose 2.7%/3.2%/2.2% YoY but fell 7.2%/2%/3.1% QoQ to Rs 57.5bn/11.8bn/9.8bn as against our estimate of Rs 57.1bn/11.6bn/9.2bn respectively. Its volume declined by 1.9% YoY but up 14.1% QoQ to 0.994mn units. Its realization/vehicle fell 5.9% QoQ (up 4.8% YoY) due to product mix (lower 3Ws), geographical mix and price rationalization in exports market. Its export realization/vehicle in USD terms fell 4.2% YoY due to product mix (lower 3W contribution) and price rationalization by passing on currency benefit. It's EBIDTA margin rose 10bps YoY (down 104bps QoQ) to 20.5% (Our Est was 20.3%), as RM/Sales fell 18bps YoY (up 132bps QoQ) to 67.2% and Other Exp/Sales decreased by 25 bps YoY/117 bps QoQ to 7.7%.