During the quarter, Royal Enfield anticipates a 4.2 percent year-on-year growth, amounting to 2.28 lakh units. Eicher Motors, the parent company of Royal Enfield, is scheduled to unveil its Q4 results today (May 10, 2024). According to Zee Business research, the company is expected to unveil a favorable set of figures, propelled by an increase in sales volumes.

Industry analysts project a 9.1 percent year-on-year increase in the company’s consolidated revenue, reaching Rs 4,150 crore, compared to Rs 3,804 crore reported in the corresponding period last year. The company’s Profit After Tax (PAT) is forecasted to climb to Rs 960 crore, marking a 6 percent increase from the previous year’s figures. In the corresponding period last year, the company’s consolidated PAT stood at Rs 906 crore.

For the January-March quarter, EBITDA is expected to soar by 21.1 percent year-on-year to Rs 1,130 crore. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.

Furthermore, margins are poised to witness growth, reaching 27.2 percent in the reporting quarter, attributed to cost reduction initiatives and enhanced operating leverage. In Q4FY23, the company’s margin was recorded at 24.5 percent. Moreover, the upswing in commercial vehicle (CV) sales and a decrease in discounts bode well for VECV margins. VECV, a collaborative effort between Volvo Group and Eicher Motors, stands to benefit from these developments.

Royal Enfield Volumes:

Royal Enfield projects its volumes during the quarter to experience a 4.2 percent year-on-year growth, totaling 2.28 lakh units. While domestic volumes are anticipated to rise by 6 percent, export volumes are expected to decline by 12 percent compared to the previous year. The company also foresees an increase in realization per unit to Rs 1,81,000, marking a 3.5 percent upturn.

Key Monitoring Factors:

Investors and stakeholders will closely monitor the company’s new product launches and the demand landscape in export markets.