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EICHER MOTORS LTD.

NSE : EICHERMOTBSE : 505200ISIN CODE : INE066A01013Industry : Automobile Two & Three WheelersHouse : Eicher
BSE19111.55-602.2 (-3.05 %)
PREV CLOSE ( ) 19713.75
OPEN PRICE ( ) 19752.20
BID PRICE (QTY) 0.00 (0)
OFFER PRICE (QTY) 19099.00 (13)
VOLUME 2718
TODAY'S LOW / HIGH ( )18929.95 19766.40
52 WK LOW / HIGH ( )18222 29799.95
NSE19098.20-621 (-3.15 %)
PREV CLOSE( ) 19719.20
OPEN PRICE ( ) 19771.00
BID PRICE (QTY) 0.00 (0)
OFFER PRICE (QTY) 19098.20 (86)
VOLUME 124036
TODAY'S LOW / HIGH( ) 18912.10 19830.95
52 WK LOW / HIGH ( )18205 29800
AnalystEmailIdswati.singh@narnolia.com
AnalystNameSwati Singh
BSECode505200
CP1DesignationMD & CEO
CP1NameMr. Siddharth Lal
CP2DesignationCFO
CP2NameMr. Lalit Malik
CP3DesignationNA
CP3NameNA
CallDate10 May 2019
DescriptionThe company has given the total production guidance of 9.5 lakhs units for FY20. The demand has been impacted due to dependency in bigger markets and also because of Kerala market where the company holds 30% market share and it still have not been able to pick up after floods. The demand for classic 350 is more in North and East India than for 500cc+ bike, especially in smaller towns. However enquiries are improving and customers are upgrading from Classic 350 to Himalayan, Inceptor and Continental GT bikes. Vinod Dasari's (CEO Royal Enfield), primary focus will only be Royal Enfield. He is also on the board of Eicher Motors, so he might have influence on VECV as well but not in the near future. The company crossed 2000 units of production of twins model in April 2019 and it is expected to 5000 units by July 2019. It has a waiting period of 4 months. The 650 Twins, Interceptor 650 and Continental GT 650 were launched in California and have been receiving very good response from customers. The deliveries of 650 twins have commenced in USA, UK, Europe, Latin America and South East Asia. The company tied-up with a local assembler to establish assembly operations in Thailand which is planned to commence operations by June 2019. The company has total of 42 exclusive stores internationally. In April 2019, the company entered into South Korea market and opened up the store in Seoul. New stores were also opened in Hanoi, Vietnam and Bogor, Indonesia. The company has added 37 dealers in 4QFY19 and 90 dealers in FY19 to reach a total of 915 dealers in India. The company has also opened up small stores in Eastern and Northern region like UP, MP, Jharkhand, Bihar etc. Margins are expected to be in the range of 27%-30% going ahead. Other expenses were high during the quarter due to company’s participation in trade shows, community rides and new model launch costs across various countries. Tax rates are expected to remain at the same level of 35% going ahead. Inventory level for Royal Enfield is at 20-22 days. Royal Enfield financing level is at 55% level. On the VECV side, VECV’s revenue was 3% lower to Rs. 3,209 crores, EBITDA declined by 13% to Rs. 274 crores and PAT declined by 22% to Rs. 139 crores. Sales declined due to intense competition, heavy discounting and higher base last year. VECV further strengthened its product portfolio with new launches in light duty segment with the Pro 2000 series, electric bus, an industry first 7 speed transmission and products based on new axle norms in 48 Tonnes and 55 Tonnes segments. VECV also entered Indonesia and South Africa under the UD brand in light duty trucks. Capex for FY20 is Rs. 700 crores which will include :- Completion of the construction work of the Technology Centre. Phase-2 of the Vallam Vadagal plant in Tamil Nadu which is expected to commence commercial production in 2HFY20. Towards the development of new platforms and products and other commercial investments.
SubjectQ4FY19 EARNING CONFERENCE CALL

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