Q3FY24 Preview: Eicher Motors: Revenue seen at ₹40,766 Million, PAT at ₹10,217 Million

12 Feb 2024 , 11:24 AM

Result date: February 13, 2024

Recommendation: Add

Target price: ₹4,160

Eicher Motors reported 3% growth in standalone sales volumes over the year-ago quarter. This metric remained flat sequentially. For the VECV segment, sales volumes grew 15% over the year-ago quarter and 7% sequentially. Analysts at IIFL Capital Services expect the company’s consolidated revenue to grow 9.6% over the year-ago quarter and inch down by 0.9% on a sequential basis.

Sequential margin tailwinds include lower input costs, favorable operating leverage and higher net pricing. Lower share of exports will be the key margin headwind on a sequential basis. The company’s EBITDA margin is pegged at 26.2%, up 314 basis points over the year-ago quarter, but down 24 basis points sequentially.

Analysts at IIFL Capital Services expect the company’s Profit After Tax to grow 37.9% over the year ago quarter and remain flattish on a sequential basis.

Important management insights to watch out for:

• Demand Trends across markets
• Updates on pricing action and margins

₹ Million	December 2023 estimates	YoY change	QoQ change
Revenue	40,766	9.6%	(0.9)%
EBITDA	10,673	24.5%	(1.8)%
EBITDA margin	26.2%	314 bps	(24) bps
Profit After Tax	10,217	37.9%	0.5%

Source: IIFL Research