Eicher Motors Q3 Results Review

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Eicher Motors Ltd.’s Q3 FY23 consolidated revenue/Ebitda/profit after tax grew 29%/47%/62% YoY to Rs 37.2 billion/ Rs 8.6 billion/Rs 7.4 billion in Q3, and grew 50%/77%/88% YoY in nine months-FY23.

Q3 FY23 Royal Enfield volumes grew 31% YoY. Realisations declined 3% YoY to Rs 162,200/unit (estimate: Rs 165,100/unit) due to a weak mix (higher Hunter contribution and lower exports).

Eicher Motors’ consolidated gross margin expanded 150 basis points YoY (-60 bps QoQ) to 41.8% (estimate: 42.1%), supported by price hikes and partial benefits of commodity cost savings.

Higher-than-expected operating costs led to an Ebitda margin miss at 23% (+280bp YoY/-30bp QoQ, estimate: 23.9%).

The share of profit after tax from VE Commercial Vehicles Ltd. came in at Rs 639 million (in line, +78% YoY). Higher other income boosted adjusted profit after tax to Rs 7.4 billion (+62% YoY, in line).

While we largely retain our FY23E earnings per share, we cut FY24E EPS by 11% as we lower our volume estimates for domestic and exports and margin estimates.

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More Research Reports On Eicher Motors’ Q3 FY23 Results Review

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