How did Eicher manage to show strong profit growth in the fourth quarter?
Answer
Answer
Eicher Motors, the manufacturer of Enfield Motorcycles and a range of other auto products, reported 8.6% sales growth for Q4FY22 at Rs3,193 crore. FY22 full year revenues were up by 18.1% at Rs10,298 crore. Supply chain constraints for inputs led to subdued growth in the quarter. For the full year FY22, the net cash from operating activities were 10% lower due to spike in trade receivables. Board has recommended final dividend of Rs.21 per share.
Eicher Motors
Rs in Crore
Mar-22
Mar-21
YOY
Dec-21
QOQ
Total Income (Rs cr)
₹ 3,193
₹ 2,940
8.60%
₹ 2,881
10.85%
Net Profit (Rs cr)
₹ 610
₹ 526
15.97%
₹ 456
33.76%
Diluted EPS (Rs)
₹ 22.29
₹ 19.21
₹ 16.66
Net Margins
19.11%
17.89%
15.83%
Net profit for Q4FY22 was up 15.97% at Rs610 crore on the strength of stringent input cost and inventory controls put in place by the company for these tough times. This is broadly contrary to the general trend seen in the auto segment. Better demand traction was visible in the VECV business. Net margins were 19.11% in Q4FY22 quarter compared to 17.89% in Q4FY21. NPM was higher as compared to 16.57% in Q3FY22 third quarter.