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Eicher Motors Q4 results today: What you should watch out for

Updated : May 10, 2019 08:41 AM IST

Eicher Motors will report its fourth-quarter earnings on Friday and analysts expect the automaker to report a weak set of numbers this time around.

  • Across the board, we have seen weak demand for the two-wheeler space but Royal Enfield particularly has borne the brunt because of higher ownership cost as well on account of changes that we have seen.

  • For Royal Enfield, the volumes have fallen in double-digit this time around. There is a 14 percent year-on-year fall that we have seen in volumes, in fact, the company post-Q3 had scaled down their production guidance for the full year as well as they anticipated slower demand coming through for the rest of the fiscal. So that volume pressure will reflect in revenues.

  • We are expecting revenues to fall by almost 4 percent, margins will be under pressure as well. So we are expecting the margins to come in at 29.1 percent versus 31.5 percent the same time last year and a profit fall of 17 percent is what we are looking at.
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