Eicher Motors Ltd. reported a solid rise in revenue and profit in the second quarter of the current financial year, meeting analyst forecasts.
Consolidated net profit of the Royal Enfield maker jumped over 24% to Rs 1,370 crore, compared to Rs 1,100 crore in the corresponding quarter last year, according to results announced on Thursday. The Bloomberg consensus estimate was Rs 1,422 crore.
Revenue from operations surged nearly 45% to Rs 6,172 crore.
At the operating level, while earnings before interest, tax, depreciation and amortisation rose 39%, the margin contracted by 100 basis points. One basis point is one-hundredth of a percentage.
Eicher Motors Q2 Results (Consolidated, YoY)
Revenue up 44.8% at Rs 6,172 crore versus Rs 4,263 crore (Bloomberg estimate: Rs 6,082 crore)
EBITDA up 39% at Rs 1,512 crore versus Rs 1,088 crore (Bloomberg estimate: Rs 1,214 crore)
Margin at 24.5% versus 25.5% (Bloomberg estimate: 24.9%)
Net Profit up 24.5% at Rs 1,370 crore versus Rs 1,100 crore (Bloomberg estimate: Rs 1,422 crore)
Royal Enfield registered its best quarterly motorcycle sales at 3,27,067 units, up 45% year-on-year. The company had decided to pass on the entire benefit of the GST rate cut to customers ahead of the festive season.
"The Government of India’s GST reform has further enhanced accessibility for motorcycles under 350cc, as reflected in the strong customer demand," said Managing Director B Govindarajan.
VE Commercial Vehicles registered sales of 21,901 units with a growth of 5.4%. Revenue from operations stood at Rs 6,106 crore, up 10.3% over last year. Eicher retained its position as the market leader in Light and Medium Duty Trucks (5 to 18.5 T GVW), the company said.
Shares of Eicher Motors settled 1.2% lower at Rs 6798.8 apiece on the BSE, after the results, compared to a flat benchmark Sensex. The stock has risen 39% year-to-date.
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