Eicher Motors Q2 Results Review - Steady Performance Amid Fundamental Levers To Grow: ICICI Direct
With CV cyclical upswing domestically, CV volumes at VECV are expected to grow amid focus on healthy profitability.
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ICICI Direct Report
Eicher Motors Ltd. posted a steady performance in Q2 FY23. Consolidated revenues for Q2 were at Rs 3,519 crore, up 3.6% QoQ. average selling prices at Royal Enfield were down 5.7% QoQ to ~Rs 1.61 lakh/unit.
RE sales volumes were at ~2.08 lakh units, up 11% QoQ. Ebitda for the quarter was at Rs 822 crore with margins at 23.3%, down 112 bps QoQ.
The company reported ~154 bps gross margin decline (amid adverse product mix) and was partially offset by operating leverage gains (primarily savings realised in employee costs as a percentage of sales, down 40 bps).
Consolidated profit after tax was at Rs 657 crore, up 7.6% QoQ. Eicher Motors’ share of profit from VE Commercial Vehicles Ltd. joint venture was at Rs 44.1 crore.
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