Eicher Motors: History, Latest Updates, Milestones, Subsidiaries & Share Price

INTRODUCTION

Eicher Motors Ltd., a key player in India's automotive industry since 1948, has left an indelible mark with its versatile vehicle portfolio. Notably, the Royal Enfield motorcycles, emblematic of reliability and efficiency, have become an integral part of daily life across the country. Found in both urban centers and rural landscapes, Eicher vehicles cater to diverse needs, from the practical transportation of goods in villages to serving as the preferred choice for commuting professionals in cities.

Beyond individual usage, Eicher's impact extends to the realm of commerce through its collaboration with Sweden's AB Volvo. The resulting commercial vehicles, born from a commitment to quality and innovation, play a pivotal role in facilitating the movement of goods across the nation. These vehicles, produced in partnership with Volvo, bolster India's trade and commerce, underscoring Eicher's dual commitment to individual consumers and the broader business landscape.

Eicher Motors Moves in 2024:

• In January 2024, Eicher Motors announced a 2 percent increase in total vehicle sales compared to the previous year, reaching 76,187 units. This marks a slight growth from the 74,746 motorcycles sold in January 2023. Specifically, sales of models with engine capacities up to 350cc saw a marginal decrease of 1 percent, dropping to 67,620 units from 68,183 units in January 2023.

• On  08th January 2024Royal Enfield signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu for a proposed investment of Rs. 3,000 crores. This investment will be allocated for both brownfield and greenfield projects in the state. Primarily, the funds will be utilized for the development of new products, electric vehicles (including product development and capacity building), and potentially for increasing capacity for internal combustion engines (ICE) if necessary. The investment is expected to create employment opportunities for up to 2,000 individuals, directly and indirectly, thereby contributing to the socio-economic advancement of Tamil Nadu.

• VE Commercial Vehicles has announced its entry into the small commercial vehicle segment by globally unveiling its first product at the Bharat Mobility Global Expo 2024. The range, introduced by Eicher Trucks and Buses, a division of VE Commercial Vehicles (VECV), covers Gross Vehicle Weight (GVW) from 2T to 3.5 T. The initial product in this range is set for customer trials in April, with commercial rollout anticipated in the first quarter of 2025.

• On 1st Feb 2024, Volvo finalized its acquisition of the battery business from Proterra Inc. and Proterra Operating Company Inc.,

• Eicher Motors achieved its highest-ever quarterly revenues, reaching Rs. 3,804 crores, and recorded the third consecutive quarter of the highest Profit after Tax, totaling Rs. 906 crores for the period ending March 31, 2023.

• The fiscal year 2022-23 saw Eicher Motors' outstanding annual results, with record-breaking total revenues of Rs. 14,442 crores. The company also achieved its highest EBITDA at Rs. 3,444 crores and the highest Profit after Tax at Rs. 2,914 crores.

• Recognizing its exceptional performance, the Board of Directors declared a final dividend of Rs. 37 per share for FY 2022-23, resulting in a substantial payout of Rs. 1,011.8 crores, equivalent to 34.7% of the Profit after Tax.

• Emphasizing strategic planning, the Board approved a capital expenditure exceeding Rs. 1000 crores for FY 2023-24, highlighting Eicher Motors' commitment to future growth.

• Eicher Motors gained global recognition by being included in the Nifty 50 Index on April 1, 2016, and continues to be listed on the Bombay and National Stock Exchanges.

• Volvo Eicher Commercial Vehicles (VECV) reported a substantial total revenue of Rs. 18,952 crores for FY 2022-23, approximately USD 2.36 billion, reinforcing its significant contribution to Eicher Motors' overall financial landscape.

Evolution of Eicher Motors: From Past to Present:

• 1948: The Goodearth Company was founded to sell and service imported tractors.

• 1958: Eicher Tractor Corporation of India Ltd. was established.

• 1959: The first indigenous Eicher tractor was manufactured at its Faridabad facility.

• 1960: The company underwent a name change, becoming Eicher Tractors India Ltd.

• 1982: Eicher Motors Ltd. was incorporated.

• 1987: Eicher Tractors became a publicly traded company.

• 1993: Eicher acquired a controlling interest in Enfield India.

• 1994: The technical assistance agreement with Mitsubishi concluded after successful technology transfer and complete indigenization. Enfield India Ltd. Renamed itself as Royal Enfield Motors Ltd.

• 2008: Eicher and Volvo Group jointly established VE Commercial Vehicles Limited.

• 2016: Royal Enfield introduced its inaugural adventure tourer motorcycle, the Himalayan.

• 2018: Royal Enfield launched the Continental GT 650 and Interceptor INT 650.

• 2019: Royal Enfield transitioned towards compliance with BS VI emission standards while concurrently expanding its retail presence through the establishment of studio stores.

Timeline of Eicher Motors:

Inside Eicher Motors: Exploring Subsidiary Ventures 

Eicher Motors Limited

Corporate actions: Eicher Motors Ltd. declared a dividend of Rs. 3,700.0 per equity share, with an ex-date of August 14, 2023.

Main News: Eicher Motors Ltd., the manufacturer of Royal Enfield motorcycles, is anticipated to register a 44 percent growth in second-quarter profits, driven by higher sales, implemented price hikes, and a reduction in raw material costs. Analyst estimates from five brokerages suggest that net profit could reach Rs 948 crore for the quarter ending September, with revenue expected to increase by over 15 percent to Rs 4,054 crore. The Q2 results are scheduled to be announced on November 10.

Royal Enfield

Main News: Eicher Motors experienced a gain in its stock value following the rollout of the new Royal Enfield Himalayan bike, with a notable 13% increase in the past month. Analysts at Nomura commented on the launch of the Himalayan range, highlighting its significance as a substantial upgrade by the auto major. They noted the bike's attractive design, improved performance, and the incorporation of advanced technology features.

VE Commercial Vehicles Limited (VECV)

Main News: VE Commercial Vehicles Ltd., a joint venture between Volvo Group and Eicher Motors, achieved sales of 7,486 units in October 2023, indicating a growth of 24.0% compared to 6,038 units in October 2022. This sales figure encompasses 7,278 units under the Eicher brand and 208 units under the Volvo brand.

Other News: 

• Eicher branded trucks & buses achieved sales of 7,278 units in October 2023, marking a growth of 23.1% compared to 5,911 units in October 2022.

• In the domestic commercial vehicle (CV) market, Eicher branded trucks & buses recorded sales of 7,077 units in October 2023, reflecting a growth of 27.4% from 5,555 units in October 2022.

• On the exports front, Eicher branded trucks & buses experienced a decline in sales, with 201 units in October 2023 compared to 356 units in October 2022, representing a decrease of 43.5%.

• Volvo Trucks and Volvo Buses collectively achieved sales of 208 units in October 2023, demonstrating a substantial growth of 63.8% compared to 127 units in October 2022.

AB Volvo

Pär Boman has been suggested as the new Chairman and Board member of AB Volvo by the Election Committee. The official appointment is anticipated to take place during the Annual General Meeting scheduled for March 2024.

Eicher Motors Limited NSE/BSE: Current Share Prices 

Achievements and milestones:

• The company has received ISO certification for its quality systems.

• It has received the IES Excellence Award, recognizing excellence in productivity, quality innovation, and management.

• The company has been honored with an award from the National Productivity Council for outstanding performance in production

• CII SCALE Awards 2022: National Award for Supply Chain and Logistics Excellence.

• Supply Chain Leadership Award 2022: Best Response to Supply Chain Resilience in Crisis.

• VECV Wins Best New Brand, Product, or Service Launch Award for My Eicher, presented by National Awards for Excellence in Branding & Marketing in July 2023.

• VECV Wins India Risk Management Award in Masters of Risk – Automotive OEM Sector, presented by CNBC-TV18 & ICICI Lombard in April 2023.

CONCLUSION

Eicher Motors Ltd. plays an active role in contributing to both society and national development. The company prioritizes eco-friendly production, community progress, and the improvement of workforce skills. Demonstrating a strong commitment to road safety, Eicher maintains high product standards. Looking to the future, Eicher aims to bolster its global presence and uphold its legacy of innovation. The company's primary focus remains on delivering advanced, efficient, and high-quality vehicles while expanding its consumer base worldwide.

Frequently Asked Questions:

1. What is the current share price of Eicher Motors?

To check the current share price of Eicher Motors, please visit the Eicher Motors Ltd share price page 

2. How is Eicher Motors performing in terms of sales growth?

Eicher Motors has shown impressive sales growth of 38.96%, with the latest quarter sales reaching Rs 3,930.71 Cr. The inventory turnover ratio, however, indicates a need for better inventory management.

3. What is Eicher Motors' profit growth, and what factors contribute to it?

Eicher Motors reports a substantial profit growth of 65.34% over the year, reaching Rs 2,622.59 Cr. New permits and increasing demand are anticipated to further boost profits in the coming years.

4. How does Eicher Motors manage its operating performance?

The operating profit of Eicher Motors in the latest quarter was Rs 1,097.44 Cr, reflecting the company's operational efficiency. This metric aids in evaluating the company's financial health and decision-making.

5. What financial parameters indicate Eicher Motors' stability?

Eicher Motors maintains a healthy ROE (Return on Equity) of 22.24% and a low Equity ratio of 0.01, showcasing financial stability despite the high equity investments typical in the auto industry.

6. What insights can be gained from Eicher Motors' dividend and market valuation?

Eicher Motors pays a dividend of Rs 37 per share, indicating a commitment to sharing profits. However, the low dividend yield of 0.97% and a current PE of 31.94, compared to the 5-year average PE of 34.55, suggest a nuanced market valuation.

7. What is the market cap of Eicher Motors stock?

The market capitalization of Eicher Motors is Rs104,763 crore.

8. What has been the highest Eicher Motors share price in the last 52 weeks?

52 Week's highest of Eicher Motors share price is Rs 3,920.00, while 52 week's low is Rs 3,920.00

 

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