Eicher Motors will report its third quarter earnings today and estimates suggest a high single digit revenue growth, driven by higher volumes and increase in average selling prices.
In the recent second quarter, the company posted 55% growth in its consolidated net profit to Rs 1,016 crore and revenue from operations increased 17% year-on-year (YoY) to Rs 4,115 crore.
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Here's what to expect from Eicher's Q3
Revenue for the third quarter is likely to grow anywhere between 8% year-on-year, according to an average estimate of four brokerages. The growth will be led by higher ASPs due price increases taken in the last one year, partly offset by lower exports.
Net profit for the same period is seen rising 32% year-on-year.
EBITDA and margins
EBITDA is likely to increase by 20% year-on-year led by rise in domestic volumes, partially offset by lower ASP on account of higher sales mix of 350cc mc and lower exports volume and new product launch expenses.
EBITDA margins are seen improving 233 bps year-on-year, but decline 172 bps quarter-on-quarter in the third quarter due to reversal of finished goods inventory, lower export mix and higher advertisement spends due to the launch of Himalayan 500.
Overall Royal Enfield (RE) volumes inched up 3% year-on-year and were flat on a sequential basis. Domestic volumes grew 6% YoY but export volumes declined 24% YoY, indicating a stress in these markets.
The total RE revenue is expected to increase by 9.6% YoY in Q3FY24, led by 3% YoY increase in