Eicher Motors surged on Thursday on the back of a rise in the company's vehicle sales for March 2003
The scrip of the commercial vehicles maker jumped by 6.4% to Rs 76.35 on the BSE in early-afternoon trades, despite the market remaining range-bound.
The Sensex was up by 16.71 points at 3,133.70 at 14:49 IST, moving in a narrow band of about 3-4 points in the last one hour of trading.
Though the Eicher Motors stock was among the biggest gainers in the market, the volumes on the counter were not much with just 2,700 shares changing hands. This was unlike on Wednesday when a heavy volume of 170,000 shares had accompanied a 3.9% surge in the stock on the back of the company's strong vehicle sales figures for March 2003, which it announced after trading hours on Tuesday.
The good sales figures have revived the EML stock, which witnessed a sluggish trend in the last few sessions. From a recent high of Rs 81.95 on 3 March, the stock had slipped to a low of Rs 69 on 31 March 2003.
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 this year. The sales figure included 103 units of the recently-launched heavy commercial vehicle, Jumbo, as well as 103 units exports of light and medium vehicles. Sales have risen by 33% year-on-year 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 happy with the current performance of EML and hope that the company will post good sales growth in the near future through the launch of a new vehicle in the medium & heavy segment. The launch may bring the company in direct competition with heavy vehicle majors like Telco and Ashok Leyland.
EML registered impressive third quarter results (ended 31 December 2002). It posted a 78.5% rise in net profit to Rs 10.48 crore on a 29% increase in sales to Rs 154.14 crore (Rs 1.54 billion).
EML is part of the Rs 1,200-crore (Rs 12 billion) 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. 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 850,000. The bus is powered by a fuel efficient 90 HP, and a 4-cylinder diesel engine available in both Bharat stage I and Bharat stage II emission norms options.
EML is planning to make an 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 transport operators who typically use medium and heavy commercial vehicles. 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. The company also has one of the best compressed natural gas technologies in the world, which it utilises in its CNG buses. It has a dealer network comprising 133 authorised sales and service centres and over 300 spare outlets.
Earlier, EML filed an expression of interest for the Punjab State Industrial Development Corporation stake in Punjab Tractors. The company has filed the said bid along with Eicher , a group associate company, as lead member.
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