Eicher Motors advances ahead of Q3 results

PAT is expected to go up by 11% driven by non-operating income.

Feb 11, 2019 08:02 IST India Infoline News Service

Eicher Motors
Shares of Eicher Motors touched a high of Rs21,473.55 in intraday trade on Monday, a rise of 634.55 points or 3% as against its previous closing of Rs20,839 ahead of declaring Q3 earnings.

The expectation for Eicher Motors is as follows:
  • Revenue: Rs2,314cr (up 2% yoy, down 4% qoq). We expect weak volumes in Q3FY19 for RE (down 6% yoy, 7% qoq) to be offset by higher realization (up 9% yoy, 4% qoq), led by introduction of newer models with disc brakes and ABS, which have a higher average selling price per unit. This will be the first time in several quarters that Royal Enfield will see single digit (yoy) growth.
  • EBITDA: Rs717cr (flat yoy, down 3% qoq). Read more. 
Volume growth moderation in Royal Enfield (RE) over the next couple of years, due to sufficient penetration may impact revenue. Waiting period for some of its popular Royal Enfield models has been coming off and some models are now available off-the-shelf.

Eicher Motors Ltd is currently trading at Rs20,975.90 down by Rs1599.1 or 7.08% from its previous closing of Rs22,575 on the BSE.

The scrip opened at Rs20,400 and has touched a high and low of Rs21,473.35 and Rs20,326.65 respectively. So far 1,59,206 (NSE+BSE) shares were traded on the counter.

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