Eicher Motors Q4 preview: Analysts see up to 35% fall in profit

New Delhi: Eicher Motors, the maker of Royal Enfield motorcycles, is likely to post up to 35 per cent year-on-year (YoY) fall in net profit in March quarter due to partial pass-through of BS-VI costs and nationwide lockdown during the second half of March 2020.

Brokerage Kotak Institutional Equities sees 24 per cent YoY fall in net profit on 13.90 per cent fall in net sales.

Volumes of Royal Enfield declined by 17 per cent YoY to 1,63,000 units in Q4FY20.

On the other hand, brokerage Nirmal Bang Securities sees 6 per cent and 11.90 per cent fall in net profit and revenue.

Eicher Motors will announce its Q4 results on Friday.

Dolat Capital sees 12 per cent de-growth in revenue. The brokerage firm also projects 352 basis points YoY contraction in margin due to negative operating leverage. It also believes that the net profit of Eicher Motors may decline by 35 per cent YoY in Q4FY20.

For the day, shares of Eicher Motors closed 3.91 per cent lower at Rs 16,418, while the benchmark BSE Sensex settled 2.07 per cent down at 33,538.

[Source – Economic Times]


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