Eicher Motors - Q1FY21 First Cut - ICICI Securities

(CMP: Rs. 21,671; MCap: Rs. 59,075 crore)

Eicher Motors' Q1FY21 performance was subdued, with miss on margins and profitability being a disappointment.

Q1FY21 Earnings Summary

- Consolidated revenues for Q1FY21 stood at Rs. 818 crore (down 65.7% YoY), in line with our estimates of Rs. 812 crore. ASPs for RE (Royal Enfield) in Q1FY21 stood at Rs. 1.33 lakh/unit flat QoQ while sales volumes stood at 57,269 lakh units, down 68.8% YoY

- The company just about managed EBITDA breakeven, with print at Rs. 4 crore, vs. estimates of Rs. 23 crore. EBITDA margins stood at 0.5% (down from 19.6% in the previous quarter) against our estimates of 2.9%. Subdued margin performance was attributable to increase in all overhead costs as a percentage of sales

- Consequent consolidated loss after tax stood at Rs. 55 crore vs. our profit estimate of Rs. 13 crore. Miss in margins and lower than expected other income led to much lower than anticipated profitability

- Company's share of loss from VECV JV stood at Rs. 65.4 crore vs. our loss share estimate of Rs. 21.6 crore

- The company has announced August 25, 2020 as the record date for stock split in the ratio of 1:10

We will be coming out with a detailed report soon.

Shares of EICHER MOTORS LTD. was last trading in BSE at Rs.20129.65 as compared to the previous close of Rs. 21671. The total number of shares traded during the day was 14321 in over 6189 trades.

The stock hit an intraday high of Rs. 21740 and intraday low of 20070.95. The net turnover during the day was Rs. 296324354.

Source : Equity Bulls

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