How do you see the Q3 numbers reported by Eicher Ltd

For the Dec-21 quarter, Eicher Motors reported 14% lower net profits at Rs.456 crore largely on account of operating cost pressures in the auto industry. However, profits were 22% higher on a sequential basis, which shows that the short term momentum appear to be favourable and improving with production getting gradually back to normalcy. Sales revenues for Dec-21 quarter were higher by 2% at Rs.2,881 crore on yoy consolidated basis.

The fall in profits in the Dec-21 quarter on a yoy basis was an outcome of a combination of factors. First, there is the all-pervading raw material inflation. Then there is lower volumes and to top it all there are semiconductor shortages. Eicher did execute some price hikes which boosted sales. Eicher is also working on an alternative vendor ecosystem to mitigate supply chain constraints. Operating EBITDA fell 13% to Rs.582 crore in Q3.