High base effect catching up with Eicher

Margins can be retained at industry-high levels of over 30%

Eicher Motors’ March 2018 quarter (Q4) results were largely on expected lines, except for a one-time loss of Rs 1.9 billion due to closure of its joint venture, Eicher Polaris. Thus, consolidated net profit came flat year-on-year (y-o-y) at Rs 4.62 billion. However, excluding the loss, net profit surged 38 per cent y-o-y in Q4, a tad ahead of estimates, supported by a 53 per cent jump in profit of VE Commercial Vehicle (VECV), a joint venture of Eicher with the Volvo Group.
 
Consolidated revenue grew 34 per cent y-o-y in Q4, led by a 5.2 per cent rise