Eicher Motors is expected to deliver a solid performance in Q2 FY24, with revenue likely to increase by around 12% year-on-year, driven by a better product mix and strong growth in exports.
- Strong Export Demand: Eicher Motors, which owns Royal Enfield, has seen robust growth in its export markets. This is expected to have positively impacted revenue, especially with new models like the Hunter 350 and Super Meteor 650 gaining traction globally.
- Improved Product Mix: The company’s focus on premium motorcycles has enhanced its product mix, leading to better margins. Models in the higher cc segment have been in demand, contributing to both top-line and bottom-line growth.
- Operational Efficiency: Cost-cutting measures and improved supply chain management are expected to support margins. Lower raw material costs and optimized production processes may also contribute to profitability.
Outlook on Financial Metrics:
- Revenue: Expected to grow by 12% YoY due to higher realizations per vehicle and strong export sales.
- Net Profit: Likely to rise by 17% YoY, driven by improved margins and better cost management.