- 14 Feb 2024
- ICICIdirect Research
EICHER MOTORS REPORTS STABLE PERFORMANCE IN Q3FY24
EICHERMOT - 5510 Change: 43.50 (0.80 %)News: On the consolidated basis, Total operating income for the quarter came in at ₹4,179 crore (up 12% YoY) amid 3% rise in Royal Enfield sales volume at 2.3 lakh units. EBITDA in Q3FY24 came in at ₹1,090 crore with corresponding EBITDA margins at 26.1% (down 30 bps QoQ). Resultant PAT for the quarter stood at ₹996 crore (up 34% YoY, down 2% QoQ). Share of profits from the VECV arm stood at ₹114 crore. At its CV arm, it has launched an Electric- LCV (2-3.5T) with deliveries to begin in Q1CY25 while EBITDA margins at VECV arm came in at 8% (flat QoQ) and have been lagging its peers.
View: Margin performance on the standalone basis (Royal Enfield franchise) was satisfactory at 27.5% (down 40 bps QoQ) amidst stable gross margin profile. Going forward management guided for healthy demand prospects primarily on the back of market expansion as well as new launches such as Himalayan 450 & Shotgun 650. It is witnessing ~15-16% YoY growth in enquiries and ~11-12% YoY growth in bookings. Its team size on the EV front has inched up to 140 people. Over the long-term investment horizon, we have a positive view on the stock amidst market leadership in premium motorcycle space and wide opportunity landscape both domestically as well as globally. Capital efficient business model and cash rich B/S remain structural positives.
Impact: Neutral