EBITDA was at Rs 154 cr vs Rs 120.5 cr, up 28%, YoY. However, EBIDTA margins remained flat at 10%. Robust growth in volumes held revenues up. Net profit was aided by curtailed input costs and other income. Raw materials costs were up by 29% at Rs 843 cr.
Bloomberg UTV spoke to Siddharth Lal, MD & CEO, Eicher Motors who said the company had an excellent quarter. The company has seen solid growth in 2011, he added. The company is investing heavily in heavy duty segments and has crossed 1,100 sales in heavy duty platform, he said.
Lal also said that the company’s market share is growing in the bus segment. “We grew by 40% in motorcycle segment.”
Speaking on input costs, Lal said, “we have seen some surge in 2011 in commodity prices, do not see them rising beyond a point now.” Commodities will be stable going ahead, he asserted.
On Eicher’s joint venture with Volvo, Lal said it is a Rs 1,000 cr in the joint venture, which absolutely envisages export of Eicher branded trucks and buses.
The company has invested in medium duty engines project and its bus body plant will be on track by end of 2012. “10,000 buses will be made every year,” said Lal. Many new products are lined to be out in three years, he added.
Eicher has a string market in South Asia, said Lal, adding that exports is a long term story. The company will see exports rising beyond 2014-2015.
Here are the other key takeaways from the interview:
On new trucks & buses, upgrades & launches:
-Coming out with new ranges of buses
-New range of buses and trucks coming out from 2013 onwards
On demand outlook:
-Many positives seen on the demand front
-Cyclical effect may be seen
-Will continue to make more investments
At 12:06 p.m., the company’s stock was at Rs 1,757, down 0.8% on the BSE. It made a fresh 52-week high at Rs 1,820 today.