Eicher Motors Q2 earnings better expectations

Eicher Motors Q2 earnings better expectations

Eicher Motors’ share price surged 5% after it posted marginally better-than-expected September quarter earnings.
Eicher Motors witnessed a healthy demand and pick-up in business activities in the auto industry.
The revenue of the company declined 3% on a year-on-year (YoY) basis to Rs 2,134 crore, against expectations of Rs 2,000 crore.

The net profit of the company fell 40% YoY to Rs 343 crore versus Rs 573 crore in the corresponding quarter last fiscal.
Earnings before interest, tax, depreciation and amortisation (EBITDA) —a measure of operational profitability—fell 13% to Rs 472 crore, while margins declined to 22.1% from 24.7%.
In the September month, the Royal-Enfield maker reported a 19.7% growth in sales. However, during the September quarter, it reported a 9% decline YoY to 1,50,519 units.
The company has continued to see improvement in its sales as they surged 11% to 66,981 units in October. While, the VECV segment also reported a 34% jump in its domestic vehicles in September.
Meanwhile, the Volvo Eicher Commercial Vehicle (VECV) sales volume are expected to rise by 21%/35%/32%  and margin to 2.6%/5.5%/7.8%. Production is constrained due to variant mix and may remain at 70,000-75,000 for now.

Disclaimer –
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.