PL First Cut - [Eicher Motors | EIM IN

PL First Cut – [Eicher Motors | EIM IN – Himanshu Singh – Research Analyst, Prabhudas Lilladher Pvt Ltd

[Eicher Motors | EIM IN | TP: INR 3,460 | ACCUMULATE]

First Cut 1QFY24 results – In line revenues, beat on consensus margin estimates

Revenue grew by 17.3% YoY, and came in line with Bloomberg consensus estimates (BBGe) and was lower than our estimates. EBITDA margins at c25.6% were largely in line with our higher than consensus estimates (25.4%) and beat BBGe (24.2%). Other operating expenses were slightly lower than expected while employee costs came in line. Higher other income aided beat on PAT.

PL View:

Largely in line results on standalone, with margins improving 130bps QoQ. Margins benefited from inventorisation benefits, which the street had likely not factored in. The stock current trades at 21.8x FY25 PE.

Financial performance Consolidated vs PLe:

Revenue grew YoY by 17.3% to Rs. 40bn, and QoQ by 4.8%, and de-grew vs PLe at -2.9%

EBITDA grew YoY by 22.8% to Rs. 10bn, and QoQ by 9.3%, and de-grew vs PLe at -2.2%

APAT grew YoY by 50.4% to Rs. 09bn, was flattish QoQ by 1.4%, and was flattish vs PLe at 1.9%

EBITDA margin expanded YoY by 115 bps to 25.6%, and QoQ by 107 bps, and expanded vs PLe at 17bps

Financial performance Standalone vs PLe:

Revenue grew YoY by 20.1% to Rs. 39bn, was flattish QoQ by 1.8%, and was flattish vs PLe at -0.8%

EBITDA grew YoY by 28.5% to Rs. 10bn, and QoQ by 7.2%, and was flattish vs PLe at 1%

APAT grew YoY by 57.5% to Rs. 09bn, and QoQ by 22.4%, and grew vs PLe at 17.5%

EBITDA margin expanded YoY by 169 bps to 26.0%, and QoQ by 130 bps, and expanded vs PLe at 46bps

Revenue per unit was flattish YoY by -1.3%, de-grew QoQ by -2.3%, and was flattish vs PLe at -0.8%

EBITDA per unit grew YoY by 5.6%, and QoQ by 2.9%, and was flattish vs PLe at 1%