FY19 likely to be even better than FY18; GST benefits flowing through: Eicher Motors

The Eicher Motors stock has risen 40 percent this year and now with the likely pro-farm focus of the government in the upcoming Budget, the coming year could be even better for them.Discussing the outlook for the company going forward Vinod Aggarwal, MD & CEO – VE Commercial Vehicles, Eicher Motors said with the teething troubles due to GST behind us the benefits have started flowing through.

There has been lot of optimization of warehouses and this leads to migration towards high tonnage trucks along with overloading restrictions in various states has aided growth for the company, said Aggarwal in an interview to CNBC-TV18.The traction in commercial vehicles has been good for the industry although in the month of November, which is seasonally a weak quarter for the company the sales are a bit tepid but it was still good compared to the earlier years. Moreover, October was a festive month, so sales were good. However, December will again see good number because of year-end sales.

The demand per se is very good but the company is facing problems with supply of some parts. The demand is more for better technology and higher tonnage trucks.According to him, going forward after March 2018, the company is not expecting any disruptions and in fact more benefits of GST  to flow through.When commodity prices go up they have to pass on the increase in prices. They have already passed around 1-2 percent price increases this month for their light and medium duty truck, said Aggarwal.


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