Eicher Motors Q1 PAT seen up 23% at Rs 90.2 cr

Revenues are seen going up by 30% to Rs 1,803 crore from Rs 1,390 crore year-on-year.

EBITDA is likely to go up by 8% to Rs 176 crore in the January-March quarter of 2012 versus Rs 163 crore in the corresponding quarter of last fiscal.

However, operating profit margin is seen falling at 9.7% versus 11.7% during the same period.

Key factors to watch out for:

* Strong volume growth of 29% YoY expected across operating segments

* However, net realizations to decrease 3% YoY as product mix shifting towards Royal Enfield bikes and competitive intensity increasing in commercial vehicle space.

* Margins to be lower YoY as high competition to prevent Eicher’s VECV business to grow margins despite 12% volume growth.

* While the Royal Enfield business may see a strong margin improvement QoQ, its overall impact on EBITDA is insignificant.

* Expect a strong 25% YoY growth in PAT, even with lower EBITDA margin due to 24% YoY sales growth