Eicher Motors Ltd. share price target

Revenue increased by 11.85% to Rs. 2517.29 Cr in Q4FY18 when compared to the previous quarter. Eicher Motors Ltd Q4FY18 results Comment

Consol. revenue grew 33.9% YoY to ~INR25.3b (est. of INR24.8b), with EBITDA growth of 36% YoY to INR8b (est. of INR8.2b). Exceptional it empertains to a loss from discontinuing operations (Eicher Polaris) of INR1.9b.Higher tax resulted in below-estimated adj. PAT of INR6.5b (+39% YoY). RE's net realization improved 4.9% QoQ (+8.7% YoY) to ~INR115k (est. ofINR113.3k). EBITDA margin expanded ~60bp QoQ (90bp YoY) to 32.3% (est.of 32%) due to operating leverage. Adj. PAT was flat YoY at INR4.1b (est. ofINR5.2b).

ICICI Securities Ltd | Retail Equity Research The board of directors of Eicher Polaris Private (EPPL), an equal joint venture between Eicher Motors (EML) & US-based Polaris Industries Inc, passed a resolution to close the operations of EPPL with immediate effect. EPPL was incorporated in October 2012, and in June 2015, the company launched Multix a personal utility vehicle. As of 31st December 2017, EML had invested |289.5 crore in EPPL and the same shall be written down in accordance with the applicable regulations....

Royal Enfield sales volumes increased 18.8% yoy to 2,06,000 units, aided by additional capacity and good demand while commercial vehicle volumes grew 37.7% yoy to 16,231 units. The company's margins registered a drop due to increased employee and other cost (all items as a % to sales, net of stock) during Q3 FY 17-18. The raw material cost as % of sales net of stock adjustments fell 80bps to 49.9%. The employee cost (as a % of sales, net of stock) increased 15bps to 5.98%. Other expense (as a % of sales, net of stock) increased to 11.5% as...

ICICI Securities Ltd | Retail Equity Research Eicher Motors reported its Q3FY18 numbers that were in line with estimates on the operational front but below estimates on the profitability front. Revenues for Q3FY18 came in at | 2269 crore (up 23.7% YoY, 4.7% QoQ), above our estimate of | 2227 crore. The beat on revenues is due to higher than estimated ASPs in RE business. The Royal Enfield (RE) volumes grew strongly at 18.9% YoY to 206,736 units while VECV volumes were up 12.2% to 16,231 units...

Eicher Motors reported steady Q3FY18 result with Consolidated Revenue and Net profit growth of 23.7% and 24.5% yoy respectively. The company sold 206,726 units of RE in Q3FY18, up 19.8% yoy. Also the performance of its JV with Volvo group (VE commercial vehicles) reported healthy growth with total volumes up 12.2% yoy and improvement in profitability.

Consolidated revenue grew 23.7% YoY to ~INR22.7b (est. ofINR22.1b), with EBITDA growth of 23% YoY to INR7.1b (est. of INR6.9b). However, higher depreciation and lower other income restricted PAT to INR5.2b (+25% YoY;est. of INR5.5b) . RE's net realization improved 2 .8% QoQ (+3.9% YoY) to ~INR109.6k (est. ofINR106.9). EBITDA margin contracted ~20bp QoQ (flat YoY) to 31.7%,higher than our estimate of 31.2% due to lower RM cost (despite commodity pressures) on efficiency gains. PAT grew 14% YoY to INR4.7b. VECV's realizations grew 2.4% QoQ (flat YoY) to INR1.6m (est. ofINR1.57m). EBITDA margin expanded 180bp YoY (-5 0bp QoQ) to 8.7% (est.of 9.4%), led by efficiency gains and operating leverage. PAT grew 134% YoY to INR1.3b (est. of INR1.4m).

Eicher Motors' (EIM) Q2FY18 results were in line. The story of strong volume growth (as capacity ramp-up mirrors global expansion) and margin expansion (as spares/accessories ramp up) remains intact. The key monitorable is how order book (1.52 months currently) trends going into the recent capa..

ICICI Securities Ltd | Retail Equity Research Eicher Motors reported its Q2FY18 numbers that were operationally above estimates. Revenues for Q2FY18 came in at | 2167 crore (up 23.2% YoY, 8.3% QoQ), below our estimates of | 2208.2 crore. The miss on revenues is due to lower than estimated ASPs in RE business. The Royal Enfield (RE) volumes grew strongly at 21.7% YoY to 202744 units, VECV volumes were up 13% to 15017 units EBITDA came in at | 683 crore (up 24.7% YoY, 10% QoQ) against our...

performance in-line; RE margins stable; VECV margin beats estimate Consol. revenue grew ~23.5% YoY to ~INR21.7b (est. of INR22.1b), with EBITDA growth of 26% YoY to INR6.8b (est. of INR7b). However, higher tax restricted consol. PAT to INR5.2b (est. of INR5.5b) growth of 25%. RE's net realization declined 2% QoQ (+1% YoY) to ~INR106.7k (est. of INR108.8) due to pass-through of input tax credit. EBITDA margin expanded ~50 QoQ (+60bp YoY) to 31.9% (est. of 31.7%), led by lower RM cost (despite commodity pressures) due to efficiency gains. PAT grew 23% YoY to INR4.9b....