On August 10, Eicher Motors Ltd. is anticipated to post a significant year-over-year improvement in its performance, with its consolidated profit after tax (PAT) anticipated rising by 152 per cent. The increase in PAT over the prior quarter is anticipated to be around 9 per cent.
It is anticipated that overall revenue for the quarter will increase by 68 per cent over the same time last year. Revenue is probably going to experience a mid-single digit increase sequentially.
Larger exports, better volumes at Royal Enfield, and higher average realisation because of the price rise implemented by the firm in May are thought to be the main drivers of the year-on-year improvement. Additionally, declining metal costs are good news for margins.
During the quarter, the business sold 1,87,000 Royal Enfield motorcycles, growing by 51.4 per cent annually.
The average realisation is anticipated to have increased by around 12,9 per cent year-on-year to reach roughly Rs 1,74,200 per unit. Realisations are anticipated to improve by just 1.2 per cent sequentially, remaining unchanged.
According to a report from Equirus Securities, “RE (Royal Enfield) volumes have increased 1 per cent QoQ (quarter-on-quarter) as well as YoY (year-on-year).
Exports increased by 17 per cent in the quarter and 59 per cent over the year, while domestic volumes decreased by 2 per cent in the quarter but increased by 50 per cent over the year. Experts will keenly evaluate the management’s commentary for the forecast on volumes and margins. On Monday, August 8, on the National Stock Exchange, the Eicher Motors share finished Rs 27.15 higher at Rs 3,116.75. The stock has returned 13.5 per cent over the past year, and over the previous month, it has increased by 6.3 per cent.