EICHER MOTORS

Eicher Motors Limited is an Indian manufacturer of motorcycles and commercial vehicles. It was incorporated in the year 1948 by Vikram Lal in New Delhi, India. They have diversified their business interests in design and development, manufacturing, and local and international marketing of trucks, buses and motorcycles, automotive gears, and components. The major subsidiaries of the company include these: Royal Enfield Motors, which is the motorcycle manufacturing subsidiary of Eicher Motors, and VE Commercial Vehicles (VECV) which a joint venture between Volvo Group and Eicher Motors. VECV has divided its operations into five business units: Eicher trucks and buses, Volvo Trucks India, Eicher Engineering Components, and VE Powertrain.

The world’s oldest motorcycle brand has continuous production and has made its distinctive motorcycles since 1901. They have started their CSR Foundation by the name: Goodearth Education Foundation in the year 2016, which focuses on providing education to children of India. The company has another foundation by the name: Eicher Group Foundation. Apart from these, they have also donated helmets, Medical Equipment and has run programs on Child and maternal care, Road safety awareness, mobile learning labs, greening of highways, donation of clothes, and electrification of villages in Himalayas, and upgradation of government schools.

Their shareholding pattern includes: Promoters having 49.23% shares, FII having 29.06% shares, DII having 9.08% shares, Public having 9.76% shares, Government having 0.15% shares and others having 2.73% shares.

For the quarter ending 31-03-2021, the company has posted a consolidated net profit of Rs.526.14 crore. Their revenue from operations were at an all-time high of Rs2,940 crore for Q4, which is an increase of 33% as compared to Rs.2,208 crore in the same period last year. The EPS showed a slight decrease and stands at Rs.19.25 against Rs.19.49 in Q3. The EBITDA margin for the company increased to 21% from 19% last year in the same quarter.

The board of directors have recommended a dividend of Rs.17 per share. Considering the challenges faces by the company this year, on account of supply chains constraints and commodity price increase, EICHER MOTORS has managed to show good recovery in the latter half of the FY21. The company has also managed to increase its footprint in India by increasing their stores from having 1,521 stores to having 1,750 stores now.