What explains the sharp rally in Eicher Motors post results?
Answer
Answer
Eicher Motors rallied by 6% to Rs.2,717 after the management assured markets that supply chain constraints would ease out and production would stabilise in the next 2 quarters. For the Dec-21 quarter, EBITDA was 13% lower due to commodity inflation and product launch spends worth Rs 60 crore. Sales were protected by higher price realization. Omicron fears and the global microchips shortage also were negative factors in the quarter.