Q2FY24 Preview: Eicher Motors: Revenue seen at Rs. 40,611 million, PAT at Rs. 9,081 million

6 Nov 2023 , 10:23 AM

Result date: November 10, 2023

Recommendation: Buy 

Target price: Rs. 3,700 

Eicher Motors recorded 10% growth in sales volumes over the year-ago quarter. This metric stood flattish sequentially. VECV volumes grew 12% over the year-ago quarter and 1.5% sequentially. This, along with growth in realizations could drive a 15% growth in consolidated revenue. Sequential revenue growth is estimated at 1.9%. Lower priced Hunter 350 gained volumes during the quarter.

Consolidated EBITDA margin could expand 244 basis points as compared to the year-ago quarter on the back of improved operating leverage and lower input costs.

Profit After Tax (PAT) could grow 38.2% as compared to the year-ago quarter and decline 1.1% sequentially.

Important management insights to watch out for:

• Demand outlook across markets
• Timeline for new product launches
• Margin trends, future trajectory

Consolidated	September 2023 estimates	YoY change	QoQ change
Revenue (Rs. mn)	40,611	15.4%	1.9%
EBITDA (Rs. mn)	10,473	27.5%	2.6%
EBITDA margin (%)	25.8%	244 bps	18 bps
Profit After Tax (Rs. mn)	9,081	38.2%	(1.1)%

Source: IIFL Research