Eicher Motors is expected to report double digit decline in June quarter profit with sharp contraction in EBITDA margin on subdued volume growth, according to brokerages.
"We expect standalone revenues to decline 5 percent YoY, led by an increase in prices as the company has introduced ABS in all its models to comply with the new safety norms. We expect EBITDA margin of Royal Enfield to decline 660 bps YoY due to negative operating leverage (-270 bps YoY) and decline in gross margin (-390 bps YoY)," said Kotak which expects consolidated adjusted net profit to decline 15 percent YoY led by weak performance of both Royal Enfield and VECV.
Royal Enfield volumes declined 19 percent YoY in Q1FY20 due to weak demand and high ownership cost.
Prabhudas Lilladher expects consolidated EBITDA margin to slip to 27 percent, lower 480bps YoY/ 40bps QoQ.
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