EICHER MOTOR 2020-21 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?  

EICHER MOTOR 2020-21 Annual Report Analysis
Wed, 20 Oct

EICHER MOTOR has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

EICHER MOTOR Income Statement Analysis

  • Operating income during the year fell 4.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 18.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.4% in FY21 as against 23.8% in FY20.
  • Depreciation charges increased by 18.1% and finance costs decreased by 12.9% YoY, respectively.
  • Other income declined by 16.6% YoY.
  • Net profit for the year declined by 26.7% YoY.
  • Net profit margins during the year declined from 18.5% in FY20 to 14.3% in FY21.

EICHER MOTOR Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 91,536 87,204 -4.7%
Other income Rs m 5,433 4,532 -16.6%
Total Revenues Rs m 96,968 91,735 -5.4%
Gross profit Rs m 21,804 17,813 -18.3%
Depreciation Rs m 3,815 4,507 18.1%
Interest Rs m 189 165 -12.9%
Profit before tax Rs m 23,232 17,673 -23.9%
Tax Rs m 5,275 4,515 -14.4%
Profit after tax Rs m 17,957 13,158 -26.7%
Gross profit margin % 23.8 20.4
Effective tax rate % 22.7 25.5
Net profit margin % 18.5 14.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Last Chance: Grab Your Free Spot for Rahul Shah's Lazy Millionaire Summit

EICHER MOTOR Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 26 billion as compared to Rs 20 billion in FY20, thereby witnessing an increase of 30.2%.
  • Current assets rose 38% and stood at Rs 88 billion, while fixed assets fell 5% and stood at Rs 58 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 146 billion as against Rs 124 billion during FY20, thereby witnessing a growth of 17%.

EICHER MOTOR Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 99,109 113,582 14.6
 
Current Liabilities Rs m 20,186 26,288 30.2
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 124,497 145,586 16.9
 
Current assets Rs m 63,746 88,085 38.2
Fixed Assets Rs m 60,751 57,501 -5.3
Total Assets Rs m 124,497 145,586 16.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



EICHER MOTOR Cash Flow Statement Analysis

  • EICHER MOTOR's cash flow from operating activities (CFO) during FY21 stood at Rs 17 billion, an improvement of 1.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -16 billion, an improvement of 9.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -148 million, an improvement of 98% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 509 million from the Rs -7 billion net cash flows seen during FY20.

EICHER MOTOR Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 16,941 17,136 1.1%
Cash Flow from Investing Activities Rs m -15,084 -16,479 -
Cash Flow from Financing Activities Rs m -8,583 -148 -
Net Cash Flow Rs m -6,725 509 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for EICHER MOTOR

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.1, an decline from the EPS of Rs 657.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,651.0, stands at 45.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 6.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 41.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 3,353.0 319.0
TTM Earnings per share Rs 657.8 48.1
Diluted earnings per share Rs 65.7 48.1
Price to Cash Flow x 3.3 41.0
TTM P/E ratio x 4.6 45.8
Price / Book Value ratio x 5.0 5.2
Market Cap Rs m 72,384 724,613
Dividends per share (Unadj.) Rs 12.5 17.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for EICHER MOTOR

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.4x during FY21, from 3.2x during FY20. 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 108.4x during FY21, from 124.0x during FY20. 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 11.6% during FY21, from 18.1% during FY21. 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 15.7% during FY21, from 23.6% during FY20. 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 9.2% during FY21, from 14.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 3.2 3.4
Debtors’ Days Days 0 1
Interest coverage x 124.0 108.4
Debt to equity ratio x 0.0 0.0
Return on assets % 14.6 9.2
Return on equity % 18.1 11.6
Return on capital employed % 23.6 15.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 2,194.2 to Rs 2,651.0, registering a gain of Rs 456.9 or around 20.8%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 25,715.5 (down 1.2%). Over the last one year it has moved up from 17,855.7 to 25,715.5, a gain of 7,860 points (up 44.0%).

Overall, the S&P BSE SENSEX is up 51.5% 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 2020-21 Annual Report Analysis". Click here!

  

Related Views on News

EICHER MOTOR Announces Quarterly Results (3QFY21); Net Profit Up 4.0% (Quarterly Result Update)

Feb 11, 2021 | Updated on Feb 11, 2021

For the quarter ended December 2020, EICHER MOTOR has posted a net profit of Rs 5 bn (up 4.0% YoY). Sales on the other hand came in at Rs 28 bn (up 19.3% YoY). Read on for a complete analysis of EICHER MOTOR's quarterly results.

Hero MotoCorp's Manufacturing Halt and Electric Vehicle Shift (Company Info)

Apr 22, 2021

Key reasons why the stock of Hero MotoCorp is in focus today.

EICHER MOTOR Announces Quarterly Results (1QFY21); Net Profit Down 97.7% (Quarterly Result Update)

Sep 14, 2020 | Updated on Sep 14, 2020

For the quarter ended June 2020, EICHER MOTOR has posted a net profit of Rs 102 m (down 97.7% YoY). Sales on the other hand came in at Rs 8 bn (down 65.7% YoY). Read on for a complete analysis of EICHER MOTOR's quarterly results.

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

Aug 7, 2020 | Updated on Aug 7, 2020

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.

More Views on News

Most Popular

10 Indian Companies with the Fastest Growth in Dividend Payouts...(Views On News)

Jan 10, 2022

These companies have been consistently paying higher dividends for several years.

Tata Steel vs SAIL: Which Stock is Better?(Views On News)

Jan 13, 2022

With government initiatives set to boost the steel sector, find out who has a better chance of coming out on top.

Watch Out for these 4 Indian Companies Betting Big on EV Supply Chain(Views On News)

Jan 11, 2022

The upside in supply chain players could be huge but a delay in the transition to EVs, or any policy related hiccups could end the momentum.

Tech Mahindra's CTC Acquisition: Too Expensive?(Views On News)

Jan 18, 2022

Tech Mahindra's acquisition of European IT-company fails to excite investors.

These 5 Penny Stocks are Held by Rakesh Jhunjhunwala. Worth a Look?(Views On News)

Jan 18, 2022

Rakesh Jhunjhunwala is holding these penny stocks in his portfolio for several years now.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) 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 - SCOOTERS IND COMPARISON

COMPARE EICHER MOTOR WITH

MARKET STATS