Eicher Motors Q4 results preview: Royal Enfield motorcycle maker’s EBITDA likely to grow by one-fifth

The Royal Enfield maker Eicher Motors is slated to report its Q4 results later today (May 10, 2024). Zee Business research desk estimates the company to report a positive set of numbers on the back of increase in sales volumes.

Analysts expect consolidated revenue at the company to edge higher by 9.1 per cent on year to Rs 4,150 crore as against Rs 3,804 crore reported in the same period last year. The company’s PAT is expected to rise to Rs 960 crore, up 6 per cent from the year-ago period. In the year-ago period, the company’s consolidated PAT was reported at Rs 906 crore.

EBITDA for the January-March quarter is estimated to expand 21.1 per cent on year to Rs 1,130 crore. EBITDA is earnings before interest, tax, depreciation and amortisation.

Margin also is likely to see a growth to 27.2 per cent in the reporting quarter on the back of easing costs and better operating leverage. In Q4FY23, the company’s margin was at  24.5 per cent. Additionally, improvement in commercial vehicle (CV) sales and reduction in discounts, will augur well for margins of VECV. VECV is a joint venture between Volvo Group and Eicher Motors.

Royal Enfield volumes 

Royal Enfield volumes during the quarter are expected to log 4.2 per cent on-year growth and come in at 2.28 lakh units. Domestic volumes are estimated to log 6 per cent increase, while export volume is seen to decline 12 per cent on-year. Realisation at the company is also seen increasing to Rs 1,81,000 per unit, witnessing an increase of 3.5 per cent.

Key monitorables

Investors and other key stakeholders will track the company’s new product launches as well as demand outlook in the export markets.