Eicher Motors Q1 Results: Profit zooms 50% YoY to Rs 918 cr

Eicher Motors Limited (EML), is a leading player in the Indian automobile industry and the global leader in middleweight motorcycles. Eicher has a joint venture with Sweden’s AB Volvo to create Volvo Eicher Commercial Vehicles Limited (VECV). 

VECV is engaged in truck and bus operations, auto components business, and technical consulting services business. It also has the Royal Enfield brand which is focused on mid-sized motorcycles (250-750 cc). The company reported its unaudited financial results yesterday for the quarter that ended on June 30 2023 or Q1FY24.   

Talking about the financials for Q1FY24 on a consolidated basis in comparison to the same quarter last year, the company’s net profit for the first quarter which ended on June 30, 2023, increased by 50.38% to Rs 918.34 crore from Rs 610.66 crore. In Q1FY24, the company’s total net revenue increased by 22.73% from Rs 3446.12 crore to Rs 4229.58 crore in a similar quarter the year prior.      

Sequentially the company’s net profit for the quarter which ended on June 30, 2023, increased by 1.41% from Rs 905.58 crore. In Q1FY24, the company’s total net revenue increased by 5.48% from Rs 4009.83 crore in the similar quarter the year prior. Company sales for the quarter were the highest-ever first-quarter sales of 19,571 units exceeding the previous record of 17,469 units in Q1FY23. 

Analyst estimates were exceeded by EML, as five brokerage firms on average predicted the company’s net profit would increase 33% to Rs 818 crore in the first quarter of the current fiscal year. 

In the last trading session, the scrip closed at Rs 3380.10. Today it opened at Rs 3429.55 and currently, it is trading at Rs 3360.15, down by 0.59%. It has a 52-week high at Rs 3886 and it has a 52-week low of Rs 2835.95. The company has a market cap of around Rs 91,950 crore. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.