Eicher Motor

Eicher Motors hit a new high yesterday at Rs.14,965 and this was on the back of market and investors feeling that the company’s future is on the right track. The company, for the nine month period ended 30th Sept 2014 ( year ending is 31st Dec) posted a 35% (YoY) rise in consolidated net sales at Rs.2251 crore and net profit was up by a healthy 54% at Rs.165 crore. Apart from increased operational efficiency, a 60% fall in interest cost helped the bottomline substantially. Tax outgo for the quarter was up 84% and yet it could the quarter on a high note. The best news here is that its net profit for this 9M period at Rs.461 crore has already surpassed that of previous 12M period at Rs.394 crore.

The company might have a very good Q4 also based on the October sales numbers. Its sales for Oct rose 47% (YoY) and exports rising 50%. The Year To Date (YTD) numbers are much better with total sales from Jan to Oct rising 75% and exports surging 49%. If the same trend continues, clearly it will end current year on a bumper note.  Also enthusing is the news that its JV with Volvo, VE Commercial Vehicles plans to garner numero uno market share position in the light-to-medium duty (LMD) trucks segment.  The company has invested Rs.2500 crore in setting up the manufacturing facility near Indore for making trucks and buses.