Two-wheeler and commercial vehicle maker Eicher Motors will announce its fourth quarter earnings on Friday. Profit after tax may spike up 73 percent year-on-year to Rs 167 crore during the quarter, driven by strong revenue and operating income.
Revenue is seen rising 33 percent year-on-year to Rs 2,232 crore due to robust Royal enfield sales and recovery in commercial vehicle business.
Royal Enfield volumes in Q3 jumped 49 percent to 82,215 units and commercial vehicle sales volumes increased 15 percent to 9,492 units on yearly basis. Within commercial vehicles, trucks sales grew 40 percent to 2,070 units and buses segment reported a strong 24 percent growth.
Operating profit may shot up 86 percent Y-o-Y to Rs 310 crore and margin may expand 390 basis points to 13.9 percent supported by strong margin improvement at Royal Enfield and commercial vehicle businesses.
Analysts say the market share has risen in the commercial vehicle business (light and medium duty trucks) to all-time high of 33.6 percent during the quarter compared to 29.1 percent in same quarter last year.
Key things to watch out for would be outlook for 2015, order backlog for Royal Enfield business, Pro series launch timeline and update on Polaris JV.
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