Markets will remain closed on 20^th November, 2024 on account of Assembly Elections in Maharashtra.

EICHER MOTORS 2023-24 Annual Report Analysis

Fri, 2 Aug

EICHER MOTORS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

EICHER MOTORS Income Statement Analysis

• Operating income during the year rose 14.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.9% in FY24 as against 26.0% in FY23.
• Depreciation charges increased by 13.6% and finance costs increased by 81.6% YoY, respectively.
• Other income grew by 80.8% YoY.
• Net profit for the year grew by 37.3% YoY.
• Net profit margins during the year grew from 20.2% in FY23 to 24.2% in FY24.

EICHER MOTORS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	144,422	165,358	14.5%
Other income	Rs m	5,951	10,759	80.8%
Total Revenues	Rs m	150,373	176,117	17.1%
Gross profit	Rs m	37,588	47,746	27.0%
Depreciation	Rs m	5,262	5,976	13.6%
Interest	Rs m	280	509	81.6%
Profit before tax	Rs m	37,996	52,020	36.9%
Tax	Rs m	8,857	12,010	35.6%
Profit after tax	Rs m	29,139	40,010	37.3%
Gross profit margin	%	26.0	28.9
Effective tax rate	%	23.3	23.1
Net profit margin	%	20.2	24.2

For Investors: Our Big Prediction

EICHER MOTORS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 36 billion as compared to Rs 32 billion in FY23, thereby witnessing an increase of 11.2%.
• Long-term debt stood at Rs 2 billion as compared to Rs 630 million during FY23, a growth of 159.6%.
• Current assets rose 13% and stood at Rs 42 billion, while fixed assets rose 22% and stood at Rs 190 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 231 billion as against Rs 192 billion during FY23, thereby witnessing a growth of 20%.

EICHER MOTORS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	149,320	179,684	20.3
Current Liabilities	Rs m	32,346	35,984	11.2
Long-term Debt	Rs m	630	1,635	159.6
Total Liabilities	Rs m	191,976	231,151	20.4
Current assets	Rs m	36,832	41,513	12.7
Fixed Assets	Rs m	155,144	189,638	22.2
Total Assets	Rs m	191,976	231,151	20.4

EICHER MOTORS Cash Flow Statement Analysis

• EICHER MOTORS's cash flow from operating activities (CFO) during FY24 stood at Rs 37 billion, an improvement of 31.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -29 billion, an improvement of 18.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -8 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 454 million from the Rs 84 million net cash flows seen during FY23.

EICHER MOTORS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	28,227	37,237	31.9%
Cash Flow from Investing Activities	Rs m	-24,165	-28,520	-
Cash Flow from Financing Activities	Rs m	-4,174	-8,444	-
Net Cash Flow	Rs m	84	454	439.4%

Current Valuations for EICHER MOTORS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 146.1, an improvement from the EPS of Rs 106.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,968.0, stands at 38.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.6 times, while the price to sales ratio stands at 8.2 times.
• The company's price to cash flow (P/CF) ratio stood at 21.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	528.1	603.9
TTM Earnings per share	Rs	106.6	146.1
Diluted earnings per share	Rs	106.3	146.0
Price to Cash Flow	x	23.5	21.2
TTM P/E ratio	x	31.1	38.3
Price / Book Value ratio	x	5.7	5.4
Market Cap	Rs m	847,396	975,426
Dividends per share (Unadj.)	Rs	37.0	51.0

Ratio Analysis for EICHER MOTORS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 1.1x during FY23. 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 103.2x during FY24, from 136.6x during FY23. 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 improved and stood at 22.3% during FY24, from 19.5% during FY24. 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 improved and stood at 29.0% during FY24, from 25.5% during FY23. 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 improved and stood at 17.5% during FY24, from 15.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.1	1.2
Debtors’ Days	Days	1	1
Interest coverage	x	136.6	103.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.3	17.5
Return on equity	%	19.5	22.3
Return on capital employed	%	25.5	29.0

To see how EICHER MOTORS has performed over the last 5 years, please visit here.

EICHER MOTORS Share Price Performance

Over the last one year, EICHER MOTORS share price has moved down from Rs 3,333.3 to Rs 0.0, registering a loss of Rs 3,333.3 or around 100.0%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 59,598.7 (down 0.2%). Over the last one year it has moved up from 35,382.0 to 59,598.7, a gain of 24,217 points (up 68.4%).

Overall, the NIFTY 50 is down 0.9% over the year.

(To know more, check out historical annual results for EICHER MOTORS and quarterly results for EICHER MOTORS)