9 Nov 2022 , 09:52 AM
Result date: 10th November, 2022
Recommendation: Buy
Target price: Rs3,400
For the September 2022 quarter, standalone volumes of Eicher Motors grew 68% over the year-ago quarter and 11% sequentially. In the VECV business, volumes increased 16.5% over the year-ago quarter and inched up 1% sequentially. The company’s consolidated revenue could grow at a robust 57.2% over the year-ago quarter and 4.1% sequentially.
Consolidated EBITDA margin could expand 271 basis points over the year-ago quarter, but decline 86 basis points sequentially. Key margin tailwinds include fall in commodity prices, operating leverage and price hikes. Key margin headwinds include adverse impact of Hunter (4â€5% sequential fall in average selling price, lower margin).
Eicher Motors’ consolidated results reflect VECV results, as ‘share of profits from JV’ under Indâ€AS. Consolidated Profit After Tax (PAT) could grow 83.4% over the year-ago quarter and 12.1% sequentially.
Important management insights to watch out for:
Rs. Million | September 2022 estimates | QoQ change | YoY change |
Revenue | 35,366 | 4.1% | 57.2% |
EBITDA | 8,346 | 0.4% | 77.6% |
EBITDA margin | 23.6% | (86) bps | 271 bps |
Profit After Tax | 6,845 | 12.1% | 83.4% |
Source: IIFL Research
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