Eicher Motors hits new low

Eicher Motors posted a very disappointing set of earnings for Q1FY20 and market is punishing it for that. The stock, as such had been hitting new lows consistently and today, post the results it was no different – it hit a new 52-week low today at Rs.15,800. It bounced back from this low to hit an intraday high at Rs.16,559.05.

The company is a victim of the slowdown which we are seeing all across. Falling volumes and sales, pushed down the consolidated net profit of the company to Rs.452 crore, down 22% (YoY). Weak demand led revenue showing a decline of 6% at Rs.2382 crore.

EBITDA fell 23% at Rs.614 crore and margins contracted by a huge 560bps to 25.8%.

Its share of profit from joint venture (VE Commercial Vehicles) fell to Rs.21 crore from 64 crore (YoY).