Bajaj Auto’s August total volumes grew by 6% YoY (~10.5% MoM) to 213,072 units (v/s est 205,000), with improvement in both domestic (~6% growth) and exports (~5.7% growth). Bajaj's domestic sales were at 137,908 units, whereas exports were at 75,164 units. Bajaj Auto 1QFY10 results are above estimates, driven by higher export realizations and higher operating leverage. EBITDA margins were at 19.5% and adjusted PAT of Rs3.1b volumes improved by 24% QoQ (but 11.7% YoY decline), driven by 29% QoQ growth (~13.8% YoY decline) in 2W and 2.5% QoQ decline (~8.8% YoY growth) in 3W. Realizations improved by 14.6% YoY (flat QoQ due to product mix change) due to higher forex rate. With encouraging response for new Discover 100, the company is planning to increase sales of Discover brand (incl Discover 135) to ~80,000/month for next two months (v/s 65,000 in Aug-09). Including new Pulsar, the company expects to sell ~500,000 motorcycles cumulative over the next two months.