Eicher Motors Q3 results!
Last updated: 10 Feb, 2021 | 10:31 am
Record profit: Eicher Motors has reported a 7% on-year rise in net profit to Rs 533 crore in Oct- Dec 20 period, in-line with street estimates. Analysts had earlier anticipated a net profit of about Rs 535 crore.
Revenue rises: The topline rose 19% on-year to Rs 2,828 crore, in line with the estimated Rs 2,810 crore. Royal Enfield sold 1.99 lakh motorcycles in the quarter, an increase of 5% compared with the year-ago period. Its exports jumped 44.4% to 12,234 units.
Green shoots in CV segment: The commercial vehicles segment, which remained under pressure in FY21, showed signs of gradual recovery. Volvo Eicher Commercial Vehicles Ltd. reported a 3% year-on-year jump in domestic sales in December, the first time since April. While the overall CV industry (3.5T GVW and above) declined by 52% YTD till December 2020, VECV sales declined by 38% for the same period. The recovery has been led by growth in sales of trucks. However, the bus segment continues to remain sluggish with a drop of 83% in Q3 as schools remain mostly closed and low inter-state movement of buses.
Stable margins: The company's consolidated operating profit in the quarter rose 13.5 per cent on a year-on-year basis to Rs. 672 crore with margins coming in at 23.7%.
Continuing the path of recovery from the zero sales in April, Indian two-wheeler manufacturers have now shown a robust growth in the preceding two quarters. This quarter has been encouraging as the company exceeded pre-Covid production levels and had its best-ever December performance till date. While we have been able to stabilise its supply chain to some degree, there are still a few issues with erratic supplies, as well as increase in logistics and commodity costs. The company saw a sharp uptick in the cost of raw materials in the quarter, as they rose 52% on year to Rs 1,672.97 crore. Going forward, the company is hopeful that the momentum would sustain as the market situation and consumer sentiment further improve.