More Stories

Informist, Monday, Jan. 27, 2025

By Anand JC

MUMBAI - A robust rise in volumes during the December quarter, supported by an increase in exports, is expected to propel growth in Eicher Motors Ltd.'s top line and bottom line to double digits, analysts said. The company's likely gains from tailwinds in input prices and positive operating leverage were partly offset by higher sales promotion expenses, analysts said.

Eicher Motors is projected to report a consolidated revenue from operations of INR 50.65 billion for the December quarter, as per an average of 13 analysts' estimates. The company's top line may grow 21.2% on year and 18.8% sequentially. Last year, the company reported its best ever September quarter revenue.

Axis Securities expects Eicher Motors' standalone revenue to increase 25% on year, driven by higher volumes in the December quarter and an increase in the average selling price of its models due to price hikes.

Eicher Motors' consolidated net profit for the December quarter will likely accelerate 19.6% on year to INR 11.91 billion, as per an average of 13 analysts' estimates. Sequentially, the company's bottom line is anticipated to grow 8.2%.

Its consolidated earnings before interest, taxes, depreciation, and appreciation for the December quarter is expected to be INR 13.32 billion, according to a mean of 12 brokerage estimates. Sequentially and on year, the company's consolidated EBITDA is expected to grow roughly 22%. Eicher Motors' consolidated EBITDA margin is expected to be 26.2% in the December quarter, slightly higher than 26.1% a year ago.

Revenues of Eicher Motors' VE Commercial Vehicles will likely rise by around a percent on year while EBITDA and profit may decline 10% and 3% on-year, respectively, Motilal Oswal Financial Services wrote in a report. Commercial vehicles endured a difficult 2024 owing to weakness in government orders, companies said.

ROYAL PERFORMANCE

The company's Royal Enfield motorcycle sales volume grew 13% in the December quarter in India, according to Society of Indian Automobile Manufacturers, likely supported by a strong festival season and demand. Overseas, the company managed to more than double its exports.

Kotak Institutional Equities is expecting Eicher Motors' consolidated EBITDA to grow 19% on year due to 19% on-year volume growth in Royal Enfield motorcycles and raw material tailwinds. The brokerage firm said a higher mix of export segment meant that the average selling price of Eicher Motors in the December quarter was 3% higher on year.

An inferior product mix may offset the growth in its consolidated EBITDA, Kotak said. The share of vehicles with an engine power of over 350cc decreased by 260 basis points in the quarter. While the company is slated to launch the Classic 650 in January, the launch dates of the New Himalayan and Scrambled 440 have not been announced yet.

Dealers sold 242,667 Royal Enfield motorcycles in the December quarter, 15.6% higher on year, as per data from the Federation of Automobile Dealers Association. Sales of tractors and commercial vehicles by the company in the December quarter were 33,273 units, up 4.2% on year.

The performance of Eicher Motors in the two-wheelers segment in 2024, especially in export markets, led it to find favour with multiple brokerage houses. Out of 16 brokerage houses, 10 have a 'buy' call on Eicher Motors, four have issued a 'hold' rating and two have a 'sell' rating. The company has not yet declared when its board will meet to approve its December quarter earnings.

On Monday, shares of Eicher Motors closed at INR 5,144.50 on the National Stock Exchange, down 1.2%. Between Nov. 13, when it reported the September quarter financials, and Monday, shares of the company have appreciated 8.9%. 

Following are the Oct-Dec earnings estimates for Eicher Motors Ltd. based on reports from 13 brokerage firms in descending order on the estimate of net profit:

End

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.