Eicher Motors Q3FY22 Preview: Conslidated revenue seen at Rs29,596 million, PAT at Rs5,294 million

14 Feb 2022 , 09:15 AM

Result date: 14th February, 2022

Recommendation: Buy

Target price: Rs3,060

Eicher Motors is likely to report standalone revenue at Rs28,919 million, up by 3.1% YoY and 32.5% QoQ. Sequential growth in volumes was driven by easing semi-conductor shortage. Price hike could almost fully offset cost pressure during the quarter.

Standalone PAT could grow 42.0% QoQ and decline marginally by 0.2% compared to the year ago quarter. 

Consolidated results could be aided VECV segment which will be incorporated in the financials as ‘share of profits from JV’ under Ind-AS.

Important management insights to watch out for:

* Demand trends

* Outlook on margins and input cost inflation

Standalone expectations

Rs. Million	December 2021 estimates	YoY change	QoQ change
Volumes	169,526	(15.1%)	37.3%
Revenue	28,919	3.1%	32.5%
EBITDA	6,391	(2.9%)	44.4%
EBITDA Margin	22.1%	(137 bps)	181 bps
PAT	4,877	(0.2%)	42.0%

Source: Company, IIFL Research

Rs. Million	December 2021 estimates	YoY change	QoQ change
Volumes	16,044	25.4%	6.1%
Revenue	33,188	23.8%	5.3%
EBITDA	1,991	(-13.6%)	17.1%
EBITDA Margin	6.0%	(-260 bps)	61 bps
PAT	398	(31.3%)	121.4%

 Source: Company, IIFL Research 

Consolidated expectations

Rs. Million	December 2021 estimates	YoY change	QoQ change
Revenue	29,596	4.6%	31.6%
EBITDA	6,663	(0.8%)	41.8%
EBITDA Margin	22.5%	(125 bps)	163 bps
PAT	5,294	(0.6%)	41.9%

Source: Company, IIFL Research