Eicher Motors may gain on strong Q1 results

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Automobiles maker Eicher Motors’ consolidated net profit surged 58.61% to Rs 376.29 crore on 42.81% growth in total income to Rs 1602.51 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 28 July 2016.

Earnings before interest, taxes, depreciation and amortization (EBITDA) margin improved to 30.2% in Q1 June 2016 from 26.1% in Q1 June 2015.

Commenting on the company’s performance Mr. Siddhartha Lal, Managing Director & CEO Eicher Motors said, that Eicher Motors has started the new financial year on strong note and reported its best ever quarter results registering 42% growth and posting the highest ever quarterly income from operations at Rs 1556 crore for Q1 June 2016. In this quarter, EML also recorded its highest ever and best-in-class EBIDTA margin at 30.2%, he added.

Commenting on Royal Enfield’s performance, Siddhartha said, Royal Enfield has maintained its strong volume growth in Q1 June 2016 and the company continues to take more orders than monthly supply. The response to Himalayan- Royal Enfield’s first adventure-tourer, has been extremely encouraging and it is now available for booking across the country. The company continues to expand footprint in India with 566 dealerships now open across the country. The company’s immediate business outlook remains strong and Royal Enfield continues to grow consistently, competitively and profitably towards leading and expanding the mid-sized motorcycle segment globally, he added.

In Q1 June 2016, Royal Enfield continued with its focus on the overseas markets. In June 2016, Royal Enfield opened its store in Manila, Philippines with its global retail identity. Philippines is among the largest two-wheeler markets in the world. With a large chunk of the population using commuter motorcycles, there is an enormous potential for customers to upgrade to mid-sized motorcycles, a segment in which Royal Enfield operates.

Commenting on VE Commercial Vehicles (VECV)’s performance Siddhartha said that VECV demonstrated an impressive performance in Q1 June 2016 with sales of 16,071 units recording a growth of 32.5% over Q1 June 2015. VECV also increased its overall market share to 15.1% in Q1 June 2016, as compared to 13.2% recorded in Q1 June 2015. VECV continues to do well in the sub 5-ton category with the introduction of Pro 1049 where it is currently selling more than 100 trucks every month since its launch in the last quarter. Eicher Motors’ 50:50 joint venture with Polaris Industries, Eicher Polaris Private Ltd., through its product Multix is generating a lot of interest among its target customers. Multix is now present in 50 locations across 8 states and it continues to gain momentum in its target markets, he further added.

Eicher Motors owns the iconic Royal Enfield motorcycle business which leads the premium motorcycle segment in India. EML’s joint venture with the Volvo group, VE Commercial Vehicles Limited, designs, manufactures and markets reliable, fuel-efficient trucks and buses; and is leading the path in driving modernization in commercial transportation in India and other developing markets

ICICI Bank and Larsen & Toubro are set to announce Q1 results today, 29 July 2016.

UltraTech Cement said it participated in the auction of coal linkages for captive power plant sub-sector and won two linkages of 27,600 tons and 19,700 tons, respectively, from Dipka Mines (SCDG) in Chhattisgarh. The company said that both the linkages were at premium of Rs 150 over notified price of Rs 970 per ton. The company said it intends to participate in the future linkage auctions for its plants located strategically near the coal mines. The announcement was made after market hours yesterday, 28 July 2016.

Indian Bank said it raised Rs 600 crore under Basel III compliant Tier II Bonds on 28 July 2016 with a coupon of 8.10% per annum, tenor at 10 years and call option after completion of 5 years, on private placement basis. The credit rating assigned is “CRISIL AAA/Negative” and “CARE AAA”. The announcement was made after market hours yesterday, 28 July 2016.

On 8 March 2016, Indian Bank received an approval from its board for raising Rs 1100 crore in one or more tranches. Later on 31 March 2016, the bank announced raising Rs 500 crore under Basel III compliant Tier I bonds on 30 March 2016.

Manappuram Finance said it raised Rs 140 crore on 28 July 2016 by allotting 1,400 secured redeemable non-convertible debentures by way of private placement. The debentures have face value of Rs 10 lakh each. The announcement was made after market hours yesterday, 28 July 2016.

Muthoot Finance’s net profit rose 47.56% to Rs 270.26 crore on 13.85% increase in total income to Rs 1300.81 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 28 July 2016.

Shriram Transport Finance Company said it allotted 100 secured redeemable non-convertible debentures (NCD s) of face value of Rs 10 lakh each, aggregating to Rs 10 crore on private placement basis. The announcement was made after market hours yesterday, 28 July 2016.

Jaiprakash Associates said that the principal installment of Rs 33.33 crore and interest of Rs 2.92 crore that became due for payment on 25 April 2016 in respect of 11.75% Non Convertible Debentures, still remains unpaid. The announcement was made after market hours yesterday, 28 July 2016.

The board of Somany Ceramics has approved increasing investment in paid up share capital of Vintage Tiles to 50% from 26%. The board also approved expanding the company’s current capacity from 2.99 million square metres (msm) per annum to 4.80 msm per annum for polished vitrified tiles (double charge). The announcement was made after market hours yesterday, 28 July 2016.

Take Solutions said that the securities issue committee of the board approved allotment of 1.08 crore equity shares of face value Re 1 each to eligible qualified institutional buyers (QIB) at the issue price of Rs 166.10 per equity share, aggregating to Rs 179.99 crore. The announcement was made after market hours yesterday, 28 July 2016.

L&T Infotech’s net profit rose 3.3% to Rs 235.80 crore on 0.2% drop in revenue to Rs 1550 crore in Q1 June 2016 over Q4 March 2016. The result was announced after market hours yesterday, 28 July 2016.

Sanjay Jalona, Chief Executive Officer & Managing Director said that with over 4% sequential growth in services revenue and close to 22% of company’s projects in Digital technologies, the company has seen growth across verticals.