Royal Enfield maker Eicher Motors' third quarter profit on consolidated basis may grow 4 percent sequentially to Rs 430 crore on operational income.
Revenue during the quarter is seen falling 7 percent to Rs 1,843 crore compared with Rs 1,981 crore in previous quarter, according to average of estimates of analysts polled by CNBC-TV18.
Operating profit may grow 6 percent quarter-on-quarter to Rs 576 crore and margin may expand 390 basis points to 31.2 percent in the quarter gone by.
Analysts do not expect any impact of demonetisation on Royal Enfield business. Average waiting period for Royal Enfield bikes is 3-4 months.
Royal Enfield volumes grew 38 percent YoY and 4 percent QoQ to 1.74 lakh units.
Analysts say upward margin trajectory should continue as scale benefits continued to improve in Q3. Price hike of 1.5 percent taken in August will also aid Royal Enfield margin.
Net realisation is expected to improve by 4 percent YoY, supported by price hikes.
Commercial vehicle volumes fell 7 percent, impacted by demonetisation. Fleet operators postponed purchases on account of cash crunch.
Hence, net realisations may decline 8.7 percent YoY as discounts are expected to be at peak.
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