Views on Eicher Motors 2QCY2015 Results: Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on Eicher Motors 2QCY2015 Results:

"Eicher Motors 2QCY2015 results were in line with estimates on the operating front. However, lower other income led to Net Profit coming below estimates. Revenues grew 30% yoy to INR 2,917 cr v/s expectation of INR 2,869 cr. Royal Enfield revenues grew 47% yoy to INR 1,097 cr led by 44% yoy growth in the volumes. VECV revenues grew 21% yoy. Operating margins improved 210 bp yoy to 14.8% v/s expectations of 15.1%. Royal Enfield margins improved 150 bp yoy to 26.4% led by operating leverage. VECV margins grew 120 bp yoy to 7.8% led by a better mix. However, lower other income impacted profitability. Net Profit at INR 222 cr was below our estimates of INR 248 cr. Currently, we have NEUTRAL rating on the stock but would review our estimates post interaction with the management."

Shares of EICHER MOTORS LTD. was last trading in BSE at Rs.21164 as compared to the previous close of Rs. 21336.55. The total number of shares traded during the day was 11832 in over 4505 trades.

The stock hit an intraday high of Rs. 21432.5 and intraday low of 20755. The net turnover during the day was Rs. 249777466.

Source : Equity Bulls

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