Eicher Motors drops after posting Q2 results

Eicher Motors declined 2.1% to Rs 29,920 at 13:55 IST on BSE after the company announced its Q2 results during market hours today, 14 November 2017.

Meanwhile, the S&P BSE Sensex was down 44.42 points or 0.13% at 32,989.14.

On the BSE, 3,712 shares were traded on the counter so far as against the average daily volumes of 2,674 shares in the past one quarter. The stock had hit a high of Rs 30,960 and a low of Rs 29,648 so far during the day. The stock had hit a record high of Rs 33,483.95 on 8 September 2017. The stock had hit a 52-week low of Rs 19,570.90 on 15 November 2016.

The stock had underperformed the market over the past one month till 13 November 2017, falling 2.57% compared with 1.85% gains in the Sensex. The scrip had also underperformed the market in past one quarter, rising 3.19% as against Sensex's 5.83% rise. The scrip had, however, outperformed the market in past one year, gaining 40.54% as against Sensex's 23.17% rise.

The large-cap company has equity capital of Rs 27.22 crore. Face value per share is Rs 10.

Eicher Motors' consolidated net profit rose 25.4% to Rs 518 crore on 23.5% rise in total income from operations to Rs 2167 crore in Q2 September 2017 over Q2 September 2016.

Earnings before interest, tax, depreciation and amortization (EBITDA) margin rose to 31.5% in Q2 September 2017 from 30.9% in Q2 September 2016.

Siddhartha Lal, Managing Director and CEO Eicher Motors said on VE Commercial Vehicles (VECV)'s performance that with better price management and continued focus on material cost reductions, EBIDTA margins for VECV improved by 100 basis points for the quarter. With reforms like GST, migration from BS III to BS IV emission norms behind now, the commercial vehicle industry started recovering in Q2 and VECV also registered a growth of 12.4% as compared to the corresponding quarter last year. At the same time, the market continues to be highly competitive with heavy discounts continuing, he added.

Eicher Motors is a leading player in the Indian automotive space. Eicher Motors owns the iconic Royal Enfield motorcycle business, which leads the premium motorcycle segment in India. The company's joint venture with the Volvo group, VE Commercial Vehicles, designs, manufactures and markets trucks and buses.

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