Q4FY22 Preview: Eicher Motors: Revenues seen at Rs31,820 million, PAT at Rs 6,113 million

12 May 2022 , 08:28 AM

Result date: 13^th May, 2022
Recommendation: Buy
Target price: Rs3,120

Company has witnessed a sequential improvement in volumes, due to easing semi-conductor shortage. VECV volumes have grown in double digit, both sequentially and over the year-ago quarter. Price hikes implemented seem sufficient to fully offset input cost pressures. Consolidated revenue could grow 8.2% over the year-ago quarter.

While gross margin could remain flattish, EBITDA margin could improve, both sequentially as well as over the year-ago quarter. Part of margin gains would be on account of the low base of December 2021 quarter. In the said quarter, margin had about 200 bps one-off hit (lumpy launch costs). Consolidated EBITDA margin is estimated at 22.7%, up 115 bps over the year-ago quarter.

Consolidated Profit After Tax (PAT) growth is pegged at 16.2% on a year-on-year basis.

Important management insights to watch out for:

• Outlook on demand across all segments and markets
• Margin levers

 
STANDALONE

Rs Million	March 2022 estimates	YoY change	QoQ change
Revenue	31,398	7.4%	10.6%
EBITDA	7,222	12.2%	24.2%
EBITDA margin	23.0%	97 bps	252 bps
Profit After Tax	5,277	12.7%	25.0%

Source: IIFL Research

CONSOLIDATED

Rs Million	March 2022 estimates	YoY change	QoQ change
Revenue	31,820	8.2%	10.5%
EBITDA	7,231	14.0%	24.2%
EBITDA margin	22.7%	115 bps	251 bps
Profit After Tax	6,113	16.2%	34.0%

Source: IIFL Research