Q1FY23 Preview: Eicher Motors: Consolidated Revenue seen at Rs32,519 million; PAT at Rs5,785 million

9 Aug 2022 , 01:34 PM

Result date: 10th August
Recommendation: Buy
Target Price: Rs3,220

Eicher Motors’ standalone volumes have surged 51% over the year ago quarter, while volumes of VECV have leap frogged by 201.4% (partly due to the base effect) in the same period. This, along with healthy revenue growth in both businesses could drive a 64.7% year-on-year growth in consolidated revenue. 

Analysts at IIFL Capital Services believe increase in input costs could put pressure on margins of the company. This pressure is expected to have continued in the entire quarter in spite of some fall in metal prices during the quarter. The company was able to offset some of the increase in input costs by raising prices.

Profit After Tax (PAT) could grow 143.9% over the year-ago quarter.

Key management insights to look into:

• Demand trends across markets
• Outlook on input cost inflation, pricing action and margins

	June 2022 estimates	Y-o-Y	Q-o-Q
Volumes (standalone)	187,205	51.4%	0.8%
Consolidated Revenue (Rs mn)	32,519	64.7%	1.8%
Consolidated EBITDA (Rs mn)	7,503	106.7%	(0.9)%
EBITDA margin	23.1%	469 bps	(63) bps
PAT (Rs mn)	5,785	143.9%	(5.2)%

Source: IIFL Research