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Eicher Motors Ltd., the manufacturer of the premium Royal Enfield motorcycle is likely to report strong results for the September quarter, according to a CNBC-TV18 poll.

The poll expects nearly 60 percent topline growth while EBITDA margin is likely to be back above the mark of 20 percent for the quarter.

Multiple factors are likely to contribute to the strong earnings performance from Eicher Motors. A recovery in the domestic business coupled with a ramp up in exports is the key.

The domestic business recovery is aided by the success of the Hunter and improvement in semi-conductor supplies. Volumes for Royal Enfield increased 68.3 percent during the September quarter to 2.08 lakh units.

EBITDA margin for the quarter is likely to go up nearly 600 basis points due to price hikes and operating leverage.

While the company had not taken any price hike during the September quarter, it hiked the prices for its 350 cc portfolio by Rs 3,000 per vehicle and for the twins by Rs 5,000 per vehicle during the April-June period.

Shares of Eicher Motors have gained nearly 40 percent this year and rank among the top performing stocks on the Nifty Auto index.

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First Published:Nov 9, 2022 6:58 PM IST