Q3FY23 Preview: Eicher Motors: Revenue seen at Rs 37,424 million, PAT at Rs 7,603 million

8 Feb 2023 , 11:11 AM

Result date: 14^th February, 2023

Recommendation: Add

Target price: Rs 3,700

Sales volumes of the standalone business grew 31% over the year-ago quarter and 7% sequentially. This, along with price hikes could drive 28% growth in standalone revenue over the year-ago quarter. Lower commodity prices, operating leverage are likely to offset the impact of higher volume share of hunter. Standalone EBITDA margin could expand 134 basis points sequentially and 452 basis points over the year-ago quarter, believe analysts at IIFL Capital Services.                

VECV sales volumes grew 13% over the year-ago quarter and 3% sequentially. Amid Lower commodity prices and price hikes, analysts at IIFL Capital Services this business to witness 69 basis points expansion in EBITDA margin sequentially and 16 basis points decline over the year-ago quarter.

On a consolidated basis, growth across revenue, EBITDA and Profit After Tax (PAT) is likely to remain healthy.

Important management insights to watch out for:

• Demand trends across markets 
• Pricing action planned and outlook on margins

Consolidated	December 2022 estimates	YoY change	QoQ change
Revenue (Rs mn)	37,424	29.9%	6.3%
EBITDA (Rs mn)	9,230	58.5%	12.3%
EBITDA margin	24.7%	445 bps	132 bps
Profit After Tax (Rs mn)	7,603	66.7%	15.7%

Source: IIFL Research