Eicher Motors Q1 preview: Net profit likely to rise 40% YoY to Rs 855 crore

Eicher Motors Q1 results preview: Eicher Motors, which is slated to release its June quarter (Q1 FY24) today, is expected to report a good set of numbers for the three-month period. The parent company of bike manufacturer Royal Enfield is estimated to report consolidated revenue of Rs 4,050 crore, up 20.3 per cent on a year-on-year (YoY) basis, according to Zee Business Research. The company had posted a revenue of Rs 3,397 crore in the year-ago period. Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) are projected to grow 18.6 per cent YoY to Rs 985 crore, while the EBITDA margin is estimated to come in at 24.1 per cent against 24.5 per cent in the year-ago period. Profit after tax (PAT) or net profit, is estimated to rise 39.9 per cent to Rs 855 crore.

The volume of Royal Enfield (RE) is expected to rise 21.6 per cent to 2.28 lakh units. However, due to continuous pressure on exports, the export volume of RE is estimated to fall by 31 per cent, the research desk notes. The realisation of Royal Enfield is expected to increase by 1.1 per cent to 175300 per unit. The CV segment is expected to see the impact of seasonality and pre-buying. Low manufacturing costs and better operating leverage are estimated to increase margins.

New product launches and the company's outlook amid increasing competition will be the key things to watch.

Eicher Motors Q4 results

For the March 2023 quarter (Q4FY23), Eicher Motors said its consolidated net profit increased by 49 per cent to Rs 906 crore on the back of robust sales across domestic and global markets. The company reported a net profit of Rs 610 crore a year ago. Total revenue from operations rose to Rs 3,804 crore for the fourth quarter as compared with Rs 3,193 crore in the year-ago period, Eicher Motors said in a regulatory filing. For the year ended March 31, 2023, the company posted a consolidated net profit of Rs 2,914 crore as compared with Rs 1,677 crore in FY22.