EICHER MOTOR 2017-18 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

We are currently facing an issue in receiving the BSE and NSE feed. Hence the stock prices are not updated. We are working on fixing this at the earliest. We regret the inconvenience caused.

EICHER MOTOR 2017-18 Annual Report Analysis
Tue, 14 Aug

EICHER MOTOR has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

EICHER MOTOR Income Statement Analysis

  • Operating income during the year rose 27.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 29.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.5% in FY18 as against 31.0% in FY17.
  • Depreciation charges and finance costs increased by 45.2% YoY and 50.0% YoY, respectively.
  • Other income grew by 23.2% YoY.
  • Net profit for the year grew by 27.2% YoY.
  • Net profit margins during the year declined from 23.7% in FY17 to 23.7% in FY18.

EICHER MOTOR Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 70,030 89,209 27.4%
Other income Rs m 2,273 2,801 23.2%
Total Revenues Rs m 72,303 92,010 27.3%
Gross profit Rs m 21,740 28,076 29.1%
Depreciation Rs m 1,538 2,233 45.2%
Interest Rs m 36 53 50.0%
Profit before tax Rs m 22,439 28,591 27.4%
Tax Rs m 7,203 9,359 29.9%
Profit after tax Rs m 17,131 21,797 27.2%
Gross profit margin % 31.0 31.5
Effective tax rate % 32.1 32.7
Net profit margin % 23.7 23.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



EICHER MOTOR Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 23 billion as compared to Rs 15 billion in FY17, thereby witnessing an increase of 48.1%.
  • Current assets rose 84% and stood at Rs 25 billion, while fixed assets rose 44% and stood at Rs 16 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 95 billion as against Rs 70 billion during FY17, thereby witnessing a growth of 36%.

EICHER MOTOR Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 53,451 70,301 31.5
 
Current Liabilities Rs m 15,298 22,652 48.1
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 70,091 95,222 35.9
 
Current assets Rs m 13,809 25,350 83.6
Fixed Assets Rs m 11,378 16,436 44.5
Total Assets Rs m 70,091 95,222 35.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



EICHER MOTOR Cash Flow Statement Analysis

  • EICHER MOTOR's cash flow from operating activities (CFO) during FY18 stood at Rs 25 billion, an improvement of 45.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -21 billion, an improvement of 23.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 752 million from the Rs -103 million net cash flows seen during FY17.

EICHER MOTOR Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 17,080 24,823 45.3%
Cash Flow from Investing Activities Rs m -17,436 -21,450 -
Cash Flow from Financing Activities Rs m 253 -2,620 -
Net Cash Flow Rs m -103 752 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for EICHER MOTOR

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 799.6, an improvement from the EPS of Rs 629.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 29,012.0, stands at 38.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 11.4 times, while the price to sales ratio stands at 9.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 36.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 2,573.7 3,272.5
TTM Earnings per share Rs 629.6 799.6
Diluted earnings per share Rs 632.1 804.3
Price to Cash Flow x 47.1 36.6
TTM P/E ratio x 38.3 38.1
Price / Book Value ratio x 11.4 11.4
Market Cap Rs m 789,415 786,224
Dividends per share (Unadj.) Rs 100.0 110.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for EICHER MOTOR

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 0.9x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 536.4x during FY18, from 631.3x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 31.0% during FY18, from 32.0% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 44.4% during FY18, from 45.6% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 22.9% during FY18, from 24.5% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.9 1.1
Debtors’ Days Days 3 3
Interest coverage x 631.3 536.4
Debt to equity ratio x 0.0 0.0
Return on assets % 24.5 22.9
Return on equity % 32.0 31.0
Return on capital employed % 45.6 44.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how EICHER MOTOR has performed over the last 5 years, please visit here.

EICHER MOTOR Share Price Performance

Over the last one year, EICHER MOTOR share price has moved up from Rs 30,360.0 to Rs 29,012.0, registering a loss of Rs 1,348.1 or around 4.4%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 24,213.6 (up 0.6%). Over the last one year it has moved up from 23,605.1 to 24,213.6, a gain of 609 points (up 2.6%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for EICHER MOTOR and quarterly results for EICHER MOTOR)

Equitymaster requests your view! Post a comment on "EICHER MOTOR 2017-18 Annual Report Analysis". Click here!

1 Responses to "EICHER MOTOR 2017-18 Annual Report Analysis"

prabhjot singh

Jan 20, 2019

nice

Like 
  
Equitymaster requests your view! Post a comment on "EICHER MOTOR 2017-18 Annual Report Analysis". Click here!

Related Views on News

EICHER MOTOR Announces Quarterly Results (2QFY20); Net Profit Up 19.7% (Quarterly Result Update)

Nov 12, 2019 | Updated on Nov 12, 2019

For the quarter ended September 2019, EICHER MOTOR has posted a net profit of Rs 6 bn (up 19.7% YoY). Sales on the other hand came in at Rs 22 bn (down 9.0% YoY). Read on for a complete analysis of EICHER MOTOR's quarterly results.

EICHER MOTOR 2018-19 Annual Report Analysis (Annual Result Update)

Sep 16, 2019 | Updated on Sep 16, 2019

Here's an analysis of the annual report of EICHER MOTOR for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of EICHER MOTOR. Also includes updates on the valuation of EICHER MOTOR.

EICHER MOTOR Announces Quarterly Results (1QFY20); Net Profit Down 15.0% (Quarterly Result Update)

Aug 1, 2019 | Updated on Aug 1, 2019

For the quarter ended June 2019, EICHER MOTOR has posted a net profit of Rs 4 bn (down 15.0% YoY). Sales on the other hand came in at Rs 24 bn (down 6.5% YoY). Read on for a complete analysis of EICHER MOTOR's quarterly results.

More Views on News

Most Popular

Is Hawkins Set to Become Our Next Superhero Stock?(The 5 Minute Wrapup)

Nov 1, 2019

After PI Industries, Hawkins has put up a stellar show so far.

Crash Alert! Is There a Big Bubble in Nestle, HUL and Asian Paints?(Profit Hunter)

Nov 7, 2019

Is this the beginning of the end of multibagger gains in quality stocks like Nestle, HUL, and Asian Paints?

These 10 Days Are Crucial for Getting Rich in the Smallcap Rebound(Profit Hunter)

Nov 5, 2019

How to avoid the most common investing mistake and make the most of the smallcap rebound.

The Top Stocks for 2020 Pass This Most Critical Metric(The 5 Minute Wrapup)

Nov 5, 2019

Charlie Munger's favorite fictional character, Mr Glotz, picks stocks using this metric.

Why Moody's Rating Downgrade is a Strong Sign to Buy Stocks(The 5 Minute Wrapup)

Nov 8, 2019

Investors who took cues from Moody's rating downgrade in 1992 and 2002 created some of the biggest wealth of their lifetime.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2020
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK EICHER MOTOR

  • Track your investment in EICHER MOTOR with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

EICHER MOTOR 8-QTR ANALYSIS

COMPARE EICHER MOTOR WITH

MARKET STATS