Motilal Oswal: Eicher Motors Posts In-Line Results; Inquiry And Booking Trends Up, Supply-Side Issues Being Addressed

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Eicher Motors Ltd. achieved Ebitda breakeven at less than 20% utilisation despite offering one-time incentives.With positive trend on inquiries and bookings, the supply side needs to normalise considering the upcoming major product launches in September 2020.Consolidated revenues/ Ebitda declined approximately 66%/99%,translating to recurring loss of Rs 552 million. Royal Enfield’s Q1 FY21 realisation grew 4.8% YoY (flat QoQ) to approximately Rs 134.3k (estimate Rs 137.6k).It was restricted due to a one-time incentive scheme post the unlocking of the economy. Standalone gross margins declined approximately 780 basis points YoY (down 540 basis point QoQ) to approximately 38.1% (estimate approximately 44.3%).This was ascribed to an approximately 400 basis point impact from a one-time incentive and the BS-6 cost inflation not being entirely passed on.Standalone Ebitda was reported at Rs 12 million (estimate approximately Rs 29 million). Higher other income restricted adjusted profit after tax decline to approximately Rs 123 million (versus estimate loss of approximately Rs 58 million)..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal: Eicher Motors Posts In-Line Results; Inquiry And Booking Trends Up, Supply-Side Issues Being Addressed

Motilal Oswal: Eicher Motors Posts In-Line Results; Inquiry And Booking Trends Up, Supply-Side Issues Being Addressed

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