A brief analysis of Q2 FY21 Revenue and PAT numbers of auto companies. After two sluggish quarters, the numbers are coming back to normal. The market has also taken note of the recovery.
Ashok Leyland:
Commercial vehicle sales are yet to pick up. The company has suffered heavily due to low demand. Sales in Q2 FY20 was far below the sales in Q2 FY19. So, the best comparison would be with sales in Q2 FY19. The last few quarters have been sluggish for the company. The stock is trading at 52 week high. The stock of this compaany defies all logic. When the things aren't good, the stock still trades at a premium.
Bajaj Auto:
The company had seen a dip in sales in Q2 FY20 in comparison to Q2 FY19, so the sales of Q2 FY21 should be compared with the sales number of Q2 FY18. Profit in Q2 FY21 was almost as at Q2 FY19 level, but it is much lower than that of Q2 FY20. Two wheeler sales are expected to do exceedingly well in Q3FY21.
Eicher Motors:
Eicher's Q2 FY20 sales was less than Q2 FY19 sales. Hence, it is better to compare the sales number from Q2 FY21. The sales numbers for Q2 FY21 are good despite low traction in HD, LMD trucks and buses. The truck sales picked up in October 2020, but bus sales number is sluggish. The company is doing quite well in the 2-wheeler segment.
Escorts Ltd:
Escorts has defied all odds and announced great set of numbers for Q2 FY21. The company has done better than what hid had achieved in Q2 FY19 and Q2 FY20.
Force Motors:
The company had seen a drop in sales number in Q2 FY20 when compared with the sales of Q2 FY19. The company was severely affected due to lockdown and it is yet to recover. The passenger utility vehicle sales are yet to pick up to reach the pre-COVID numbers.
Hero Motocorp:
The sales for Q2 FY21 was better than it has ever seen. The PAT for Q2 FY21 was as good as PAT for Q2 FY19. The company has done so well that it suddenly became a hot favourite among investors and traders.
Mahindra and Mahindra:
The sales number for Q2 FY21 was as good as Q2 FY20, but the Profit before tax and exceptional items for Q2 FY21 was much better than that same number reported for Q2 FY20. Tractor sales have been quite good. LCV has picked up in sales. On the whole, the company has recovered from the jolt. The good news for the company is that bookings for Thar has crossed 20000. The company is still far away from its Q1 FY19 and Q2 FY19 numbers.
Maruti Suzuki:
The revenue from operations for Q2 FY21 was well below the corresponding numbers for Q1 and Q2 FY19. But the company has beaten its Q2 FY20 revenue and PAT by some margin. Vehicle sales have picked up after a period of lull. Q3 FY21 is expected to be good.
Tata Motors:
After two very bad quarters, the company is limping back. Revenue for Q2 FY21 was far less than what it had achieved in Q2 FY19 and Q2 FY20, but the things are looking brighter now. One of the problems is the high level of debt it has in its books.
TVS Motors:
Like other two-wheeler companies, in Q2 FY21 TVS Motors also did better than Q2 FY20. Margin was affected because of the strategy of clearing the inventory by offering discount. Q3 FY21 is expected to be better for the company.
