Eicher Motors


(Ash7) #426

@skotte

My feeling is that Eicher will surely be affected by demonitization, atleast on the 2-wheelers side. Though we can say the impact will be less than that on bajaj and hero, since royal enfield caters to a niche segment of customers. Bajaj has already estimated a 25% Y-o-y degrowth in next month sales in an interview .

Overall the immediate future does not look good for 2-wheelers segment, since a majority of transactions were done with cash. There is a possibility that we might see further correction when the sales figures are out, but on the long term the story seems to be intact.

Disc-Not holding, looking to enter at around 19000 levels


#427

Decent monthly numbers with 41% growth YoY.

http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/A3626AFA_B18E_4046_B59D_A815CC7D2A62_105135.pdf

Hardly any demonitization impact. Since they have around 2-3 months waiting period, even if some would have canceled orders there would be hardly any change. I think those Rs 10 lakh+ Bentley, Triumph, Kawasaki and Harley Davidson should be the first to be affected (if at all) and then our Rs 1.5 Lakh RE.

Even Maruti sales up 12%. I’m surprised!


(fabregas) #428

Eicher and Maruti models are in high demand, and there is usually a waiting period for their models. So if someone books a model 3 months in advance, i.e. in August, and it is delivered in November, when does the company record the sale - August or November? If they record it in November then the numbers should not surprise you.


(Yogesh Sane) #429

Sales is booked when delivery is made and delivery is made when payment is received from customer. Sales booked by company depends on how company books dealer stock as inventory on its books or sales to dealer.

Receivables will be a good number to look at in this context. If company is making sales on credit to clear the inventory and keep factories running, then receivables will jump (and may go bad later). But we won’t see that data until May-June of next year.


(JKS) #430

http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/9F130685_77B9_4CF9_929C_758B6707B746_115009.pdf

PHEWWWWWWWWW!!! What demonetisation !! 57K RE in Dec’16 :bike:

Well …as always the SIAM figures for VCEs come a bit behind (by a few hrs)
http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/CA5A37D5_81DF_41EC_9ED5_3BCC0D5F4B2D_160601.pdf
This one definitely has some ugliness


(sanketkulkarni1987) #431

No signs of slowdown for RE … Except Yamaha (which has reported 28% units growth), Bajaj Auto and Hero are both down for the month of December.

Will do a scuttlebutt in mid-Jan to find out if the waiting periods are still intact for RE.

Disc: Invested


(weblinsolutions) #432

^^ Enfied had a very high number of Pre-bookings. They have cleared that in December. Month of Jan will be interesting to watch out for.


(Dhiraj Dave) #433

Find enclosed a link on youtube providing some idea about propsective product launch. I do not have any idea about authencity of the news and reader shall take its own due diligence before taking any decision. Having said that, I thought it is worth sharing.


(MHS) #434

January 2017 RE Bike Sales:


http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/D8F8C0E3_787E_4C72_B136_9217F9320511_123451.pdf

January 2017 VE Commercial Vehicles:


http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/0D441094_5E08_4A03_A6D9_07DCE169E9BA_140922.pdf


(MHS) #435

Q3 Dec-2016 Results:


http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/F65C2B41_4009_4679_919F_216BB5332293_141946.pdf


(sanketkulkarni1987) #436

The business is as strong as ever. The “cult” of Royal Enfield is alive and spreading to different countries. Recently on a visit to Vietnam, one of the tour operators shared he was very impressed with Royal Enfield. He shared that he was saving money for last 2 years to buy an Enfield (after his boss bought one). RE is an aspirational product. As long as it remains so, margins will be high and sales will keep on ticking. I agree with what Siddhartha Lal shared in a recent interview at Davos (link available on moneycontrol.com), - Royal Enfield has barely scratched the surface and their is a long way to go

Disc: Invested - Plan to hold long term. Views might be biased


(MHS) #437

Feb 2017 sales:

http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/ABAD3621_9132_4842_9BF1_024B26907D01_131840.pdf


(Dhiraj Dave) #438

So, first time after many months, sales growth lower than 19%. The main question is whether it is one time or new normal.

CV business have shown however better growth as compared with Ashok Leyland during February.


(Kumar Saurabh) #439

Not sure if it’s lower booking effect during demonetization visible in next quarter post demonetization


(Dhiraj Dave) #440

Possible. However, I see more issue on production limitation as Yamaha also register 20% sales growth in sale during Feb 2017. I doubt that domenitisation would have impact only on Royal Enfield sales after lag.

http://economictimes.indiatimes.com/india-yamaha-domestic-sales-grow-20-in-february/articleshow/57427165.cms


(sanketkulkarni1987) #441

One month sales might not be a true reflection of slowing down of growth. Lets wait to see the number for atleast a couple of months more


(Kumar Saurabh) #442

The other possibility I can think of is if you see <350cc has grown at 25 % but it’s the >350cc creating dent, high price premium bikes finding less buyers due to demonetization. Were these buyers from specific states paying in cash type ? Also , any idea what’s the post booking wait time of >350cc bikes of richer vs Yamaha .


(Kumar Saurabh) #443

Also it would be interesting to compare Yamaha 350 cc bike growth with eicher as I believe there could be a possibility that major sales of Yamaha happening around 200cc type


(aashish2137) #444

A first in Indian Medium and Heavy duty commercial market, Eicher has launched the AMT technology.

Maruti introduced this technology in its passenger vehicles about 4 years back and it has been received very strongly by consumers.

Link


(MHS) #445

March 2017 Motorcycles Sales:

http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/f6f6f9a0-ffae-41dd-ac0d-b450081e1c17.pdf