Eicher Motors misses estimates, sees muted Q4FY18 PAT at Rs 461.53 crore; shares end lower

Royal Enfield-owner Eicher Motors missed analysts estimate in fourth quarter ended March 2018 result, as the company posted consolidated net profit of Rs 461.53 crore in the period which only saw gradual rise of 0.45% compared to Rs 459.44 crore in the corresponding period of the previous year. However, Q4FY18 net profit declined by 11.33% from Rs 520.5 crore of preceding quarter. 

Consolidated total revenue stood at Rs 2,528.01 crore registering growth of 18.54% yoy and 11.14% qoq during the quarter. Eicher recorded revenue of Rs 2,132.54 crore in Q4FY17 and Rs 2,269.01 crore in Q3FY18. 

Raghunandhan NL and Mumuksh Mandlesha analysts at Emkay had said earlier, “We expect consolidated revenue to grow by 33% yoy (+11% qoq) to Rs25.2bn, led by 27% yoy (+10% qoq) growth in 2W volume. EBITDA margin would expand by 40bps qoq (+60bps yoy) to 31.6%.”

They added, “Overall, adjusted PAT is likely to increase by 33% yoy (+18% qoq) to Rs6.1bn. We expect share of profits from associates to increase to Rs935mn (+77% yoy; +51% qoq).”

Looks like Eicher has missed analysts estimate in both top-line and bottom-line during Q4FY18. 

For the year end FY18, Eicher recorded consolidated earnings of Rs 1,959.70 crore higher by 17.55% compared to Rs 1,667.08 crore in previous fiscal FY17. While revenue came in at Rs 9,219.26 crore up by 16.12% versus Rs 7,939.45 crore in FY17. 

On standalone basis, PAT stood at Rs 1,712.91 crore in FY18 recording single-digit growth of 9.80% from Rs 1,560.02 crore in FY17. As for revenue was at Rs 9,211.81 crore up by 15.96% from Rs 7,944.06 crore in FY17. 

The company has recommended dividend of 1100% (i.e. Rs. 110/- per equity share of face value of Rs. 10 each) for the financial year ended March 31, 2018. 

Also have issued and allotted 10,085 Equity Shares of face value of Rs. 10/- each of the Company to persons exercising options pursuant to Employees Stock Option Plan of the Company.

The stock price of Eicher was trading on higher note since the start of Wednesday’s trading session, however, the company gave away gains after result announcement. 

Stock price of Eicher closed at Rs 30,305.45 per piece down by Rs 129.80 or 0.43% on BSE.