Eicher Motors (Q1 CY14)

India Infoline News Service | Mumbai |

Eicher Motors during Q1 CY14 reported a strong performance with better than expected OPM and PAT.

CMP Rs6,450, Target Rs6,589, Upside 2.1% 
  • Consolidated performance better than expected on the back of stronger than anticipated standalone performance

  • Royal Enfield reported highest ever OPM of 23.1%, a surge of 539bps yoy driven by significant benefits of operating leverage

  • VECV performance was below estimates as volumes were lower by 20.8% yoy leading to below estimate OPM

  • We downgrade our rating to Market Performer with a revised price target of Rs6,589 as we believe that CY15E P/E of 19.3x more than adequately factors the upside in Royal Enfield business and recovery in the commercial vehicle business

Result table (Consolidated)

(Rs m)
Q1 CY14
Q1 CY13
% yoy
Q4 CY13
% qoq
Net sales
19,242
17,243
11.6
16,795
14.6
Material costs
(10,990)
(10,560)
4.1
(8,908)
23.4
Purchases
(1,822)
(1,424)
27.9
(2,230)
(18.3)
Personnel costs
(1,544)
(1,272)
21.4
(1,418)
8.9
Other overheads
(2,667)
(2,283)
16.8
(2,574)
3.6
Operating profit
2,220
1,705
30.2
1,666
33.3
OPM (%)
11.5
9.9
165 bps
9.9
162 bps
Depreciation
(477)
(275)
73.9
(394)
21.2
Interest
(59)
(6)
843.5
(38)
55.6
Other income
553
444
24.6
145
280.9
PBT
2,237
1,868
19.7
1,379
62.2
Tax
(676)
(541)
25.0
(167)
303.5
Effective tax rate (%)
30.2
28.9
12.1
Other provisions / minority etc
(170)
(348)
(51)
(250)
(31.7)
Adjusted PAT
1,391
979
42.0
962
44.5
Adj. PAT margin (%)
7.2
5.7
155 bps
5.7
150 bps
Reported PAT
1,391
979
BSE 29,578.00 875.05 (3.05%)
NSE 29,478.70 740 (2.57%)

***Note: This is a NSE Chart

 

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