Eicher Motors Ltd.'s second quarter profit rose in line with analyst estimates, led by record sales of its Royal Enfield motorcycles.
Net profit for the July-September quarter rose 25 percent from the year-ago period to Rs 518 crore, Eicher Motors said in a stock exchange filing today. The Bloomberg consensus estimate stood at Rs 540 crore. The bottom line was boosted by a “best ever” 22 percent growth in sales of Royal Enfield motorcycles during the reported period, according to a separate media statement.
The automaker has recently launched two motorcycles – the Interceptor 650 Roadster and the Continental GT 650 Cafe Racer – expanding Royal Enfield's market share, the statement added.
Royal Enfield aims to lead and expand the mid-weight (250-750cc) motorcycle segment globally. Along with our existing portfolio of singles, the Royal Enfield Interceptor 650 twin and Continental GT 650 twin will help grow this segment.Siddhartha Lal, MD And CEO, Eicher Motors
Consolidated revenue increased 23 percent year-on-year to Rs 2,167 crore as compared to the same quarter last year. Net sales, excluding excise duty levied last year, grew 23.6 percent to Rs 2,161 crore.
The operating income remained strong as well, rising 26 percent to Rs 683 crore, while margins expanded to 31.5 percent from 30.9 percent a year ago.
The automaker's commercial vehicle segment also witnessed robust sales due to “better price management and continued focus on material cost reductions,” Lal said in the statement. A 12.4-percent growth in the segment indicates it has recovered from the initial disruption caused by the Goods and Services Tax implementation and migration to new emission norms, he added.
Later in a conference call, Lal said the company has set a target to roll out 8.25 lakh bike units during the current fiscal year. When asked about new product launches, he said Royal Enfield would not introduce new models till around 2020 when BS VI emission norms come into play, wire agency PTI reported. “There may be, however, launches of variants of the current products,” Lal said.
Also Read: Eicher Motors October Sales Up 18% As Exports Double
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
