Eicher Motors Q1 preview: PAT to climb 9%; margin expansion to be likely by 100 bps
Eicher Field manufacturing auto major is likely to report margin expansion in Q1 aided by reduced input cost as well as better operating leverage.
The Royal Enfield maker Eicher Motors is slated to report its Q1 results later today (August 8, 2024). Zee Business research desk estimates the company to report a positive set of numbers. For the reporting quarter, Zee Business Research Desk estimates the company's consolidated PAT to climb to Rs 1,000 crore as against Rs 918 crore in the same quarter last year, logging a 9 per cent increase. This is largely expected given the reduced loss of the company's JV with Volvo.
Revenue at the company is seen to log 6.6 per cent growth to Rs 4,250 crore. The same was Rs 3,986 crore in the same quarter of the previous fiscal year. The company's Q1 EBITDA is also seen to clock low double-digit growth of 10.7 per cent at Rs 1,130 crore versus Rs 1,020 crore in the same period a year-ago.
The desk said that the company's margin is likely to expand by 100 bps to 26.6 per cent on the back of a reduced input cost and better operating leverage.
Nonetheless, volume at the company will register a decline by 0.7 per cent to 2.26 lakh units during the April-June period. The company in the domestic markets is seen to register a 2 per cent volume de-growth, while the same is seen to gain strength by 15 per cent in the export market.
The realisations at the company during the review quarter is also seen rising by 6.4 per cent to Rs 1,82,300 per unit.
Furthermore, subdued sales in the CV segment is seen to put pressure on VECV margins.
Key monitorables
Investors will keep an eye on the company's new launches as well as demand outlook in the export market.
Eicher Motors' share price performance
Shares of the company in the last one year have zoomed 37 per cent, while last ahead of its results today it closed at Rs 4,597.15, down by over 1 per cent.
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