IGI Logo

Eicher Motors has reported performance for Q4FY22 and FY22. Following are the highlights:

Highlights from the Quarter (Q4FY22):

Eicher Motors reported consolidated revenues of Rs. 3,193.3 cr for Q4FY22 as against Rs. 2,940.3 cr for the corresponding quarter last year (up 9% YoY) and against Rs. 2,880.7 cr for the preceding quarter (up 11% QoQ). The global chip shortage and the 3 rd wave of the Covid-19 pandemic impacted the revenues during the quarter. The company sold 1,82,125 motorcycles during the quarter, down 10.4% on a YoY basis. On the EBITDA front, the company reported EBITDA of Rs. 875.1 cr for the quarter, down 17% from Rs. 748.3 cr for the same quarter last year and up 23% from Rs. 710.4 cr on a sequential basis. On the net level, the company reported net income of Rs. 610.1 cr at a net margin of 19% for Q4FY22 as against Rs. 526.1 cr (up 16% YoY) for Q4FY21 and Rs. 456.1 cr (up 34% QoQ) for Q3FY22. The company reported an EPS of Rs. 22.32 for the quarter.

For the full year, the company reported revenue of Rs. 10297.8 cr, up 18% YoY from Rs. 8,720.4 cr in the previous fiscal. During the year Royal Enfield registered sales of 5,95,474 motorcycles, down 2.3% YoY. EBITDA for FY22 stood at Rs. 2,172.3 cr at a margin of 21%. Net Income for the year stood at Rs. 1867.6 cr, up 24% YoY at a net margin of 16%. The company reported EPS of Rs. 61.35 for the year and declared dividend of Rs. 21. FY22 marked Eicher’s highest ever total revenue from operations, EBITDA and PAT

OUTLOOK AND VALUATION

Eicher Motors’ performance for the quarter and the full year were better than our expectations. The company reported strong revenues on account of improvement in volumes and price hikes taken to combat rising raw material prices. While the chip shortages continued to affect deliveries, new product launches helped the company in gaining market share. Robust growth in non-motorcycle business further aided the topline. The company further strengthened its efforts on its global strategy and has improved its global network to over 3,000 stores.

Considering the challenges on the raw material front- along with dwindling demand, we have changed our estimates to incorporate the same. We expect FY24E revenue at Rs. 15,704 cr, EBITDA at Rs. 4,586 cr and net income at Rs. 3,667 cr. We expect net margin of FY24E to recover to 23.3% and deliver an EPS of Rs. ~134. We maintain our BUY rating on Eicher Motors with a PE multiple of 24x, arriving at a target price of Rs. 3,220 showcasing an upside of ~22% from the current levels over an investment horizon of 18 to 24 months.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.sushilfinance.com/Disclamier/disclaimer
Member : BSE/ NSE/ MSEI. SEBI Registration No.-INZ000165135.

Above views are of the author and not of the website kindly read disclaimer