Eicher Motors Ltd.'s net profit rose in the quarter ended December driven by higher sales of its motorcycle brand Royal Enfield, as well as commercial vehicles.
The Royal Enfield owner's net profit rose 24.5 percent to Rs 520.5 crore from the year-ago period, Eicher Motors said in an exchange filing today. This was slightly lower than Rs 538 crore profit estimated by analysts tracked by Bloomberg.
Sales of Royal Enfield motorcycles grew nearly 19 percent from last year to 2.06 lakh units. The motorcycle's share in the domestic market in 150cc and above category expanded to 30.5 percent from 26.8 percent last year. “Export volume increased by 68 percent to 5,578 motorcycles in the quarter on the back of increased focus and activity in international markets,” Managing Director Siddhartha Lal, managing said in the release.
Sales of the company's domestic commercial vehicles jumped 42.7 percent. “With almost all the disruptions and uncertainties now behind us, the CV industry is currently on an upward trend, with record sales in December and excellent potential for growth in the current quarter,” Lal said.
The rise in sales was partly on account of a lower base in the comparable quarter due to the demonetisation of high value currency notes in November 2016.
Other Highlights
- Eicher Motor's revenue rose 23.7 percent to Rs 2,269 crore, in line with the Rs 2,220 crore estimate.
- Earnings before interest, tax, depreciation and amortisation rose 22.6 percent to Rs 707.5 crore.
- Ebitda margin remained flat at 31.2 percent.
Shares of Eicher Motors ended 1.5 percent higher at Rs 28,010.5. The stock fell 2.8 percent during the third quarter while the NSE Nifty 50 Index gained 7.6 percent in the same period.
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