Eicher Motors stock skyrockets over 4% despite chips shortage and onset of third wave impacting Q3FY22, PAT comes at Rs456 crore

15 Feb 2022 , 12:35 PM

Eicher Motors stock was in the fast lane on Tuesday after the company reported its financial performance for the quarter ending December 2021 (Q3FY22) period. The stock was near the day’s high on exchanges.

Eicher posted total revenues at Rs. 2,881 crores, up by 1.9% as compared to Rs. 2,828 crores in the corresponding quarter of FY 2020-21. EBITDA was at Rs. 582 crores as compared to Rs. 672 crores in the same quarter of the previous financial year. Profit After Tax was recorded at Rs. 456 crores as against a profit of Rs. 533 crores during the same period last year.

Royal Enfield sold 1,67,664 motorcycles during the quarter, a decline of 15.6% from 198,557 motorcycles sold over the same period in FY 2020-21.

As per Eicher, the ongoing global shortage of semiconductor chips and the onset of the third wave of Covid with Omicron, impacted the third quarter results. However, Eicher Motors Ltd. recorded considerable sequential improvement as compared to Q2 FY 2022 with a 28.0% growth of revenues (over Rs. 2,250 crs) and a 35.3% sequential growth of EBITDA (over Rs. 430 crs; adjusted for one-offs).

Siddhartha Lal, Managing Director of Eicher Motors Ltd, said, “Continuing global shortage of semiconductor chips and the onset of the third wave of the COVID-19 pandemic, posed a challenge to the industry at large during the third quarter. We are working towards creating an alternative vendor ecosystem to mitigate the impact of the shortage on the supply front. Our performance continues to remain resilient despite challenges. Our international performance has been strong, and the introduction of the all-new Classic 350 drove significant consumer interest in India and global markets. This is reflected in our financial performance with sequential growth in EBITDA margin of 1.1% quarter-on-quarter (adjusted for a one-off).”

The MD added, “At VECV, we made good progress across all segments backed by our focused and granular approach. We achieved encouraging growth despite supply chain challenges. Our consistent efforts towards aligning the next stage of our growth with a renewed ESG vision saw Dow Jones position Eicher Motors Limited as one among only ten global automotive companies to feature on its elite list of Dow Jones Sustainability Indices 2021 (DJSI) in the Emerging Markets category.

At around 12.32 pm, Eicher was trading at Rs2671.45  per piece up by a whopping Rs102.90 or 4.01% on BSE. The stock was near the day’s high of Rs2682.60 per piece.