Q4FY23 Preview: Eicher Motors: Revenue seen at Rs. 37,098 million, PAT at Rs. 8,366 million

9 May 2023 , 04:08 PM

Result date: 11^th May, 2023

Recommendation: Buy

Target price: Rs 3,560

Eicher Motors posted 18% growth in standalone sales volumes over the year ago quarter and 31% growth in VECV sales volumes. Sequentially, these metrics grew flattish and 47%, respectively.

Price hikes, operating leverage and lower discounts in trucks are key margin tailwinds while higher volume share of Hunter is an important margin headwind.

On a consolidated basis, the company’s revenue could grow 16.2% over the year ago quarter. EBITDA margin could dip 35 basis points to 23.4% and Profit After Tax (PAT) could grow 37.1% over the year-ago quarter.

Important management insights to watch out for:

• Demand trends across markets, product segments
• Outlook on margin and pricing action

	March 2023 estimates	YoY change	QoQ change
Revenue (Rs. Million)	37,098	16.2%	(0.3)%
EBITDA (Rs. Million)	8,665	14.5%	1.1%
EBITDA Margin (%)	23.4%	(35) bps	32 bps
Profit After Tax (Rs. Million)	8,366	37.1%	12.9%

Source: IIFL Research