Eicher Motors shares fall ahead of Q4 results; here's what 5 brokerages say
Analysts project Eicher Motors to report a decent growth in revenue, EBITDA and PAT on a YoY basis, while QoQ performance is likely to remain under pressure.
- May 11, 2023,
- Updated May 11, 2023 12:53 PM IST
Shares of Eicher Motors were trading lower on Thursday ahead of its quarterly earnings for the quarter ended on March 31, 2023. The Royal Enfield bike-maker dropped about a per cent to Rs 3389.05 on Thursday, before making a partial recovery as the session progressed. Analysts project Eicher Motors to report a decent growth in revenue, EBITDA and profit after tax (PAT) on a year-on-year (YoY) basis, while quarter-on-quarter (QoQ) performance is likely to remain under pressure on the back of higher raw material prices. However, EBITDA margins are seen exposing up to 120 basis points (bps). Eicher Motors is seen reporting a steady performance in the March quarter. Royal Enfield (RE) volumes for the quarter stood at 2.2 lakh units, down 1.3 per cent sequentially with the product mix marginally improving in favour of more than 350 cc segment. Share of over 350 cc motorcycles in total sales volume for Q4FY23 was at 10 per cent against 9 per cent in Q3FY23. Antique Stock Broking sees Eicher Motors to report sales at Rs 3,534.3 crore, up 10.6 per cent YoY but down on QoQ basis, while its EBITDA is seen at Rs 848.2 crore, rising 12.4 per cent YoY but down 1 per cent QoQ. It pegs Eicher's net profit at Rs 644.3 crore, rising 16.4 per cent but falling 5.3 per cent QoQ. Eicher's March quarter volumes stood at 218,525 units, up 17.7 per cent YoY. Strong export volume sales as dispatches for Super Meteor 650cc started and lower base QoQ, offset by a 5 % drop in domestic sales. Realization likely to inch-up by 2 per cent QoQ to Rs 1,72,599 per unit led by price increase and higher export contribution, offset by a subdued product mix, said SMIFS Research.
Also Watch: Dr Reddy's share price tanks 6% after Q4 results; what should investors do? "EBITDA margin is projected at 24.2 per cent driven by the higher export contribution and benefits of soft commodities. VECV reported a healthy margin at 9 per cent in Q4 due to operating leverage benefits as volumes shot up by 45 per cent QoQ, price increase along with higher MHCV sales," it added. According to Axis Securities, Total Royal Enfield sales declined by 1 per cent QoQ led by lower domestic sales partially offset by higher exports which jumped up by 37 per cent QoQ on lower base and launch of Meteor 650. "We expect EBITDA and EBITDA margins to slightly improve QoQ led by higher realization and nearly flat raw material expenses QoQ," it said. ICICI Securities expects consolidated net sales for Eicher Motors at Rs 3,642 crore, down 2.1 per cent QoQ. Ebitda for the quarter is seen at Rs 882 crore with Ebitda margins at 24.2 percent, up 120 bps QoQ. Consolidated PAT for the quarter is expected at Rs 770 crore, up 4 per cent QoQ. On a YoY basis, Emkay Global sees Eicher's profit rising 32 per cent YoY to Rs 807 crore. It sees yoY sales rising 17 per cent YoY to Rs 3,752 crore. It sees Ebitda margin at 23.5 per cent against 23 per cent in December and 23.7 per cent in the year-ago quarter.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
Also read: Dr Reddy's Labs shares at Rs 4,200? Stock sees price target cuts as gRevlimid sales wane
Shares of Eicher Motors were trading lower on Thursday ahead of its quarterly earnings for the quarter ended on March 31, 2023. The Royal Enfield bike-maker dropped about a per cent to Rs 3389.05 on Thursday, before making a partial recovery as the session progressed. Analysts project Eicher Motors to report a decent growth in revenue, EBITDA and profit after tax (PAT) on a year-on-year (YoY) basis, while quarter-on-quarter (QoQ) performance is likely to remain under pressure on the back of higher raw material prices. However, EBITDA margins are seen exposing up to 120 basis points (bps). Eicher Motors is seen reporting a steady performance in the March quarter. Royal Enfield (RE) volumes for the quarter stood at 2.2 lakh units, down 1.3 per cent sequentially with the product mix marginally improving in favour of more than 350 cc segment. Share of over 350 cc motorcycles in total sales volume for Q4FY23 was at 10 per cent against 9 per cent in Q3FY23. Antique Stock Broking sees Eicher Motors to report sales at Rs 3,534.3 crore, up 10.6 per cent YoY but down on QoQ basis, while its EBITDA is seen at Rs 848.2 crore, rising 12.4 per cent YoY but down 1 per cent QoQ. It pegs Eicher's net profit at Rs 644.3 crore, rising 16.4 per cent but falling 5.3 per cent QoQ. Eicher's March quarter volumes stood at 218,525 units, up 17.7 per cent YoY. Strong export volume sales as dispatches for Super Meteor 650cc started and lower base QoQ, offset by a 5 % drop in domestic sales. Realization likely to inch-up by 2 per cent QoQ to Rs 1,72,599 per unit led by price increase and higher export contribution, offset by a subdued product mix, said SMIFS Research.
Also Watch: Dr Reddy's share price tanks 6% after Q4 results; what should investors do? "EBITDA margin is projected at 24.2 per cent driven by the higher export contribution and benefits of soft commodities. VECV reported a healthy margin at 9 per cent in Q4 due to operating leverage benefits as volumes shot up by 45 per cent QoQ, price increase along with higher MHCV sales," it added. According to Axis Securities, Total Royal Enfield sales declined by 1 per cent QoQ led by lower domestic sales partially offset by higher exports which jumped up by 37 per cent QoQ on lower base and launch of Meteor 650. "We expect EBITDA and EBITDA margins to slightly improve QoQ led by higher realization and nearly flat raw material expenses QoQ," it said. ICICI Securities expects consolidated net sales for Eicher Motors at Rs 3,642 crore, down 2.1 per cent QoQ. Ebitda for the quarter is seen at Rs 882 crore with Ebitda margins at 24.2 percent, up 120 bps QoQ. Consolidated PAT for the quarter is expected at Rs 770 crore, up 4 per cent QoQ. On a YoY basis, Emkay Global sees Eicher's profit rising 32 per cent YoY to Rs 807 crore. It sees yoY sales rising 17 per cent YoY to Rs 3,752 crore. It sees Ebitda margin at 23.5 per cent against 23 per cent in December and 23.7 per cent in the year-ago quarter.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
Also read: Dr Reddy's Labs shares at Rs 4,200? Stock sees price target cuts as gRevlimid sales wane