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Eicher Motors up the motorway
April 02, 2003 13:46 IST
Eicher Motors' 55% jump in m-o-m vehicle sales for March 2003 had the scrip speeding away to the day's high of Rs 71.50.
At that point (10:46 IST), the stock of the commercial vehicles maker was above its yesterday's close on BSE by 3.62% . A total of 1,250 Eicher Motors shares changed hands by that time. But the going has not been all too good for the scrip of late. In the 30 sessions between 17 February and 1 April 2003, Eicher Motors lost 20.7% to Rs 69 from Rs 87.
For March 2003, the Delhi-based company reported a 55.1% rise in vehicle sales to 1,610 units compared to 1,038 units in February 2003. The sales figure included 103 units of the recently-launched heavy commercial vehicle (HCV), Jumbo, as well as 103 units in exports of light and medium vehicles. Sales have risen 33% y-o-y from 1,211 units in March 2002.
For the year ended 31 March 2003, EML's sales increased to 12,717 units from 9,630 units sold in 2001-02. The sales comprised 281 HCVs and 1,331 light and medium vehicles (exports).
Analysts are upbeat about the current performance of Eicher Motors and hope that the company will post good sales growth in future through the launch of the company's new M&H vehicle. The launch should bring the company in direct competition with heavy vehicle majors like Telco and Ashok Leyland.
Earlier, EML filed an expression of interest for the Punjab State Industrial Development Corporation (PSIDC) stake in Punjab Tractors. The company has filed the said bid along with Eicher , a group associate company, as lead member. It has also decided to explore the possibility of finding a suitable partner for the purpose of forming a consortium for filing the expression of interest.
Eicher Motors registered impressive third quarter ended 31 December 2002 results - a 78.5% rise in net profit to Rs 10.48 crore (Rs 5.87 crore) on a 29% increase in sales to Rs 154.14 crore (Rs 119.48 crore).
EML is part of the Rs 1,200-crore Eicher group, which has interests in tractors, motorcycles, diesel engines, automotive gears and components. The company exports its commercial vehicles to South Asia, West Asia and Africa.
During October 2002, EML expanded its range in the bus segment and launched its sleekly designed 34-seater bus Eicher Voila in Kochi, Thrissur, Kozhikode and Kannur in Kerala. Voila was actually launched in February 2002. This was the second range of buses from the Eicher stable after its popular skyline range. The new range is available in attractive colours and is priced at around Rs 8.5 lakh. The bus is powered by a fuel efficient 90 HP, 4 cylinder diesel engine available in both Bharat stage I and Bharat stage II emission norms options.
The company is planning to make entry into the multi-axle segment early this fiscal. The company is in the process of revamping its current distribution and service network, by taking into account the needs of long distance freight operators who typically use MHCVs.
From a single six-tonne GVW truck in 1986, the company's range today extends from 5-t to 16-t GVW trucks and the Skyline and Voila range of buses. All its products can be offered in BS II compatible options. It also has one of the best CNG technologies in the world in its CNG buses. The company has a dealer network comprising 133 authorised sales and service centres and over 300 spare outlets.
As on 31 December 2002, the promoters' holding in the company was 55.6%, while the public and institutions held 31.2% and 5.16%, respectively.
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