Eicher Motors rides well

Eicher Motors is doing very well today morning, currently up over 8% at Rs.3464, with an intra day high at Rs.3497.90. Volumes have more than doubled at 5012 shares.

The stock has jumped up on the back of very good numbers for Q1FY14, much ahead of most estrimates. Its two-wheeler sales, mainly Royal Enfield, remains its biggest grosser, helping get over the slowdown in its commercial vehicle sales. Standalone net revenue rose 50% (YoY) at Rs.255 crore, led by a 45% volume growth. EBITDA margin at 17.8% was up 250 bps. On a consolidated basis, which includes its JV with Volvo, revenue rose 5.4% (YoY) at Rs.1669 crore. EBITDA was up 19% at Rs.166 crore and margins rose 120 bps at 10%. The company ended the quarter with a net profit at Rs.125 crore, up 12%. Though the outlook for CVs remains muted, the company hopes to led growth through its two-wheelers. It has lined up a new launch – Continental GT for September’13 and the company hopes that will help boost its earnings, given the harvest and season taking off during that time.