Royal Enfield maker Eicher Motors is expected to announce its results on November 13.
What Happened: Eicher Motors is expected to post a 7% increase in net profit to ₹1,087.65 crore. The company’s revenue is expected to jump 10% to ₹4,453.53 crore. The company’s EBITDA is expected to come at ₹1,190.28 crore.
| Brokerage | Revenue | EBITDA | Net Profit |
|---|---|---|---|
| Motilal | 4,431.90 | 1,186.50 | 1,075.90 |
| Kotak | 4,473.00 | 1,195.00 | 1,071.90 |
| Nuvama | 4,488.10 | 1,194.80 | 1,119.90 |
| Elara | 4,421.10 | 1,184.80 | 1,082.90 |
| Average | 4,453.53 | 1,190.28 | 1,087.65 |
In the previous year, Eicher Motors posted a net profit of ₹1,016.30 crore, ₹4,033 crore revenue and ₹1,087.20 EBITDA.
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Brokerages expect the performance of the company’s flagship model, Royal Enfield to be underwhelming in the quarter. Kotak said Royal Enfield volumes are expected to come flat in the quarter with exports doing the heavy lifting with 11% volume growth while domestic sales went down 2%.
Despite this, the brokerage expects the company to post 10% revenue growth due to a richer product mix which consists of a lower Hunter mix and higher exports along with more than 400 cc bikes. The price hikes the company has taken over the last year could also help the volume growth, the brokerage added.
Motilal Oswal expects the Royal Enfield margin to be stable on a quarterly basis at 28% while VECV, the company’s joint venture with Volvo‘s margins to be flat Quarter on Quarter.
Price Action: Shares of Eicher Motors fell 1.55% to ₹4,719 on Tuesday.
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