Eicher Motors Ltd's (EML) consolidated numbers in Q4FY19 were broadly in-line with consensus expectations on all fronts. Consolidated revenue for the quarter stood at Rs2,500.1cr, down 1.1% yoy (up 6.8% qoq). Due to subdued sales coupled with higher raw material cost and other expenses, EBITDA declined 14.1% yoy to Rs684.7cr. Thus, EBITDA margin contracted by 415bps yoy to 27.4%. Other income for the quarter jumped by 68.0% yoy to Rs142.7cr. Company's Adj. PAT declined by 16.0% yoy to Rs544.8cr.
Motorcycle sales for Royal Enfield registered a decline of 13% yoy to 1,97,567 units. This was mainly on account of challenging H2FY19 for the two-wheeler industry in India with factors such as revision in insurance cost, increase in prices on account of new safety norms, affected consumer sentiment.
Royal Enfield reported revenue growth of 1% yoy to Rs2,500cr with EBITDA of Rs685cr (down 14% yoy) and PAT of Rs545cr (against Rs462cr in the same period last year).
Royal Enfield announced its entry into South Korea and opened its flagship store in Seoul in April 2019. Company also opened new stores in Hanoi, Vietnam and Bogor, Indonesia.
In Q4FY19, Royal Enfield launched the Bullet Trials Works Replica - a new variant inspired by the 1949 Bullet Trials motorcycle that won several trials championships in the 1950’s and 60’s. It is currently available in India and will be launched globally soon.
In the Commercial Vehicles segment, VE Commercial Vehicles (VECV) - Eicher’s joint-venture with AB Volvo - was affected by the industry slowdown. For the quarter, VECV’s revenue declined by 3% yoy to Rs3,209cr with EBITDA of Rs274cr (down 13% yoy) and PAT of Rs139cr (down 22% yoy).
Volume sales of VECV declined by 9% yoy to 21,010 trucks and buses. Given intense competition, heavy discounting and higher base from last year, VECV’s sales in the Light & Medium Duty (LMD) segment declined by 9% and 25% yoy in the Heavy Duty (HD) segment during the quarter.
Eicher Motors Ltd ended at Rs. 20,348.80, up by 66.55 points or 0.33% from its previous closing of Rs. 20,282.25 on the BSE.
The scrip opened at Rs. 20,273.90 and touched a high and low of Rs. 20,450 and Rs. 20,271.35 respectively. A total of 3,872 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.
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