Shares of Eicher Motors jumped over 1% on BSE Sensex ahead of its third quarter result for December 31, 2016. 

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At 9.24 am, share price of Eicher Motors was trading at Rs 23,219 per share on BSE, surging over Rs 258 or 1.12%. 

Riding on robust Royal Enfield sales, Eicher Motors consolidated net profit rose 45.2% year-on-year (yoy) to Rs.413.2 crore in Q2FY17. 

Analysts at Kotak Insititutional Equities said, "Eicher Motors are likely to report strong earnings growth while most other auto companies will likely struggle in this quarter post demonetisation." 

Kotak estimates Eicher Motors' standalone net profit to be at Rs 412.3 crore up by 68.3% yoy and revenue at Rs 1861.3 crore above 45% yoy. 

The report said, "This will be led by demand for Royal Enfield which continues to remain strong." 

Analysts added, "We expect standalone EBITDA to grow by 57% yoy aided by strong volume growth and margin expansion led by scale benefits."

On consolidated front, Kotak projects Eicher Motors net profit at Rs 425.8 crore growing by 57.3% yoy. But sees EBITDA margin for VECV business to decline by 200 basis points qoq to 6% due to negative operating leverage

Overall sales volume is seen at 173,838 units higher by 38.2% from 125,744 units in the corresponding period of previous year, Kotak added. 

In December 2016, Royal Enfield reported a 42%  rise in total  sales at 57,398 units, against 40,453 units in the same month a year ago.