Eicher Motors Q1 Review - Supply Chain Constraints Continue: Systematix
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Systematix Research Report
Eicher Motors Ltd.'s Q1 FY22 Ebitda margin at 17.5% was below consensus and our estimates as operating deleverage hurt profitability.
VE Commercial Vehicles Ltd.'s margin was also weak at 1.1%.
For Royal Enfield, the management indicated that it is facing supply chain constraints due to the second wave of Covid-19 and the shortage of semiconductors.
This has also led to a delay in the launch of the new Classic 350.
Demand has started to improve with the lifting of local lockdowns and the management is focusing on mitigating the supply chain constraints.
Eicher Motors' network expansion and improved product portfolio in the export markets is yielding positive results; exports now account for more than 10% of the topline versus 3% five years back.
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