Eicher Motors Q1 result | Consolidated net profit up 2.5 times YoY at Rs 611 crore; revenue jumps 72%

Eicher Motors | CMP: Rs 3,154.55 | The share price ended in the green on August 10. The company reported a consolidated profit after tax (PAT) of Rs 610.66 crore for the quarter ended June 2022, growing by 157.5 percent on year from Rs 237 crore in the year-ago period. On a sequential basis, the profit was flat against Rs 610 crore in the January-March period. The maker of iconic Royal Enfield reported a year- on-year (YoY) growth of 72 percent in its consolidated revenues at Rs 3,397 crore, up from Rs 1,974 crore. Sequentially, the revenue rose 6.4 percent from Rs 3,193 crore in the March quarter.

Eicher Motors Ltd on August 10 reported consolidated profit after tax (PAT) of Rs 610.66 crore for the quarter ended June 2022, growing 157.5 percent from Rs 237 crore in the year-ago period. On a sequential basis, the profit was flat against Rs 610 crore in the January-March period.

PAT was in line with the estimates of the six brokerages polled by Moneycontrol.

The maker of iconic Royal Enfield reported a year- on-year (YoY) growth of 72 percent in consolidated revenues at Rs 3,397 crore, up from Rs 1,974 crore, which was higher than Moneycontrol's estimate of 68 percent growth. Sequentially, revenue rose 6.4 percent from Rs 3,193 crore in the March quarter.

The YoY growth was driven by export segment, a rise in volumes of Royal Enfield and a higher average realisation following the price hike in May, the company said.

Its other income dipped 62 percent to Rs 48.7 crore as against Rs 128 crore during the year-ago quarter.

The cost of raw materials as a percentage of operating revenue remained stable for the quarter at 58 percent against 57.7 percent in the year-ago quarter and 57.4 percent in the January-March period.

The employee costs as a percentage of operating revenue dipped 400 basis points on year to 7.3 percent, while the other expenses remained flat at 12.3 percent compared to 12.4 percent last year.

One basis point is one-hundredth of a percentage point.

EBITDA (earnings before interest, tax, depreciation and amortization) for the quarter at Rs 831 crore was up 130 percent from Rs 360 crore in the year-ago quarter.

The softening of metal prices helped the margins, which came in at 24.5 percent against 18.4 percent in the same quarter of the previous financial year.

Eicher Motors closed Rs 37.8 higher at Rs 3,154.55 on the National Stock Exchange. The stock has generated returns of 15.4 percent during the year and 7.6 percent over the month.