Last updated: 03 Nov, 2021 | 06:48 pm
Revenue rises: Eicher motors revenue rose sequentially by 14% to Rs 2250 cr beating analyst estimates. Estimated revenue was around Rs 1,974 cr. On year revenue rose by 5% from Rs 2,133 cr in the same quarter last year.
Net Profit above estimates: Net profit for the Jul-Sep quarter rose 57% on quarter to Rs 373 crore beating street estimates. Analysts had earlier estimated revenue of around Rs 306 cr. On year profit rose by 9% from 343 cr in the year ago quarter. In the Jul-Sep quarter, VECV posted a profit of Rs 18 crore from a loss of Rs 7.2 crore in the corresponding period last year.
Margins: Operating profit rose 30% sequentially to Rs 469.9 crore. However, it decreased from Rs. 471 crores in the same quarter of the previous financial year. Operating margin increased to 20.9% from 18.4% in the last quarter.
Sales volume: Eicher Motors’ sales improved marginally by 1.1% over the preceding quarter to 1.23 lakh units. In the Jul-Sep quarter, Royal Enfield sold 1,23,515 motorcycles, a decline of 17.2% from 1,49,120 motorcycles sold over the same period in last quarter. VE Commercial Vehicles (VECV) the company's joint venture with Volvo recorded overall sales volume of 15,134 units against 8,167 units in the same period last year, a growth of 85%.
CV segment: CV industry is likely to grow based on pent-up replacement demand as well as demand of construction and infrastructure related trucks. With a strong product portfolio and focus on retail excellence, the company is in a good position to continue on its growth path. Last quarter, the company had launched the new high-end premium Volvo heavy duty trucks suitable for rigorous mining, construction and long-haul applications that are designed to deliver higher operational efficiency increasing productivity and profitability for the customers.
Eicher Motors Q2 earnings review :
Eicher Motors has reported a strong set of numbers in the Jul-Sep 21 period, in the context of the ongoing challenges such as semiconductor shortages and supply chain constraints. Company continued its strong growth momentum backed by a robust recovery in HD (heavy duty), LMD (light and medium duty) and bus segments. The Jul-Sep quarter also saw a remarkable performance by Royal Enfield in international markets with a growth of more than 130% over the same quarter last year.
The whole automobile industry including Eicher Motors is suffering from semiconductor shortages which has affected their production ability. This is expected to continue till the end of 2021. Moving forward, the company foresees the supply chain situation improving gradually and expects the availability of parts to increase beginning Q3-FY22 which will enable it to further ramp up production. Overall, with the market picking up over the festive season, consumer sentiment significantly improving over the year, the company sees that demand continues to be strong and outstripping supply.