Eicher Motors Q1 results update!

Last updated: 13 Aug, 2020 | 04:49 pm

Eicher Motors Q1 results update!

  • Results below estimates: Eicher Motors has reported a loss of Rs 55 crore in Q1FY21, as compared to a profit of ₹453 crore in the same period previous fiscal. Analysts had earlier estimated a profit of about ₹25 crore. 
  • Sales tumble: The month of April had been a complete washout for the auto sector. Eicher Motors’ revenue from operations plunged by more than 66% on-year to ₹818 crore. Royal Enfield sold 58,383 motorcycles in the quarter, a decline of 68% from 181,966 motorcycles sold over the same period in FY 2019-20. 
  • Green shoots: Covid-19 has impacted the normal business operations of Eicher Motors by way of interruption in production and supply chain during the lock-down period.” The company’s manufacturing units resumed operations on May 06, 2020 after being suspended on March 23, 2020. However, the firm is seeing encouraging signs of recovery. 

Q1FY21 results were expected to be weak for auto-makers given a complete washout in April, and throttled supply chain in May. However, the last two months of June and July have seen a rapid recovery in sales for two-wheelers and truck manufacturers. The company has said that it  witnessed encouraging consumer sentiment towards the end of Q1FY21, which was evident in its sales for the month of June. Demand from semi-urban and rural towns have picked up well, and the Royal Enfield-maker is optimistic about capturing this. 

Consensus recommendation: Hold (Based on views of 43 analysts from external research institutions)

Finzoom Investment Advisors Private Limited (Brand Name - INDmoney, INDwealth, IND.app, IND.money, INDsave.com) makes no warranties or representations, express or implied, on products and services offered through the platform. It accepts no liability for any damages or losses, however, caused in connection with the use of, or on the reliance of its advisory or related services.

Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. Performance and returns of any investment portfolio can neither be predicted nor guaranteed.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Marketing and distribution of various financial products such as loans and deposits are powered by Finzoomers Services Private Limited.

INDmoney, INDwealth, IND.app are brand and product of Finzoom Investment Advisors (P) Limited.

© Finzoom Investment Advisors Private Limited

[SEBI RIA Registration No: INA100012190] [Type of Registration: Non-Individual] [Validity of registration: December 17, 2018-Perpetual] [Address: 616, 6th Floor, Suncity Success Tower, Golf Course Extension Road, Sector – 65, Gurugram, Haryana- 122005] [Principal Officer details: Mr. Gaurav Sharma, Email id: principalofficer@indwealth.in, Contact No. 8800826254] [Corresponding SEBI local office address: Securities and Exchange Board of India, Local Office, First Floor, SCO 127-128, Sector 17C, Chandigarh-160017]

[ARN - 151913] [Platform Partner : BSE (Member code-24801)] [CIN - U67190HR2018PTC073294] [GST No : 06AADCF3538Q1Z8]