EICHER MOTOR Announces Quarterly Results (3QFY21); Net Profit Up 4.0%

Thu, 11 Feb

EICHER MOTOR has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

EICHER MOTOR Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	23,710	21,336	28,283	32.6%	19.3%
Other income	Rs m	1,347	1,000	1,250	25.1%	-7.2%
Turnover	Rs m	25,057	22,336	29,533	32.2%	17.9%
Expenses	Rs m	17,787	16,626	21,562	29.7%	21.2%
Gross profit	Rs m	5,923	4,711	6,720	42.7%	13.5%
Depreciation	Rs m	952	1,048	1,229	17.2%	29.1%
Interest	Rs m	43	38	36	-5.8%	-15.5%
Profit before tax	Rs m	6,275	4,624	6,706	45.0%	6.9%
Tax	Rs m	1,454	1,152	1,694	47.0%	16.5%
Profit after tax	Rs m	4,821	3,472	5,012	44.4%	4.0%
Gross profit margin	%	25.0	22.1	23.8
Effective tax rate	%	23.2	24.9	25.3
Net profit margin	%	19.2	15.5	17.0

Year-on-Year Performance:

• The company's operating income during the quarter grew 19.3% on a year-on-year (YoY) basis. The expenses were up by 21.2% YoY during the same period.
• The company's operating profit increased by 13.5% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 23.8% in 3QFY21 as against 25.0% in 3QFY20.
• Depreciation charges increased by 29.1% and finance costs declined by 15.5% YoY, respectively.
• Other income declined by 7.2% YoY during the quarter.
• Net profit for the quarter increased by 4.0% YoY. Net profit margins during the quarter declined from 19.2% in 3QFY20 to 17.0% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 32.6% on a quarter-on-quarter (QoQ) basis. The expenses were up by 29.7% QoQ during the same period.
• The company's operating profit increased by 42.7% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 23.8% in 3QFY21 as against 22.1% in 2QFY20.
• Net profit for the quarter increased by 44.4% QoQ, while net profit margins increased from 15.5% in 2QFY20 to 17.0% in 3QFY21.

To see how EICHER MOTOR has performed over the last eight quarters,please visit here.

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EICHER MOTOR Share Price Performance

Over the last one year, EICHER MOTOR share price has moved up from Rs 1,898.1 to Rs 2,815.4, registering a Gain of Rs 917.3 or around 48.3%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 24,714.0 (down 0.5%). Over the last one year it has moved up from 17,737.6 to 24,714.0, a gain of 6,976 points (up 39.3%).

Overall, the S&P BSE SENSEX is up 25.8% over the year.

Current Valuations

At the current price of Rs 2,815.4, the price to earnings (P/E) ratio of EICHER MOTOR stands at 6.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.8 times.