Eicher Motors Ltd. reported its highest quarterly profit in at least a decade during the April-June period. Yet, it missed estimates.
Net profit rose 25 percent from the year-ago period to Rs 576.2 crore, the Royal Enfield motorcycle maker said in its exchange filing. That compares with Rs 606 crore consensus estimate of analysts tracked by Bloomberg. This is the highest quarterly profit in at least 10 years, according to Bloomberg data.
Revenue rose 27 percent to Rs 2,547 crore, in line with Rs 2,525-crore estimate. This was driven by 22.5 percent volume growth for Royal Enfield.
The company's operational performance, too, met estimates. The operating income, or earnings before interest, tax, depreciation and amortisation, rose 30 percent to Rs 809 crore. That's in line with the Rs 805-crore consensus estimate. The operating margin expanded to 31.7 percent from 31.1 percent a year ago. Analysts had estimated 31.8 percent. The margins were driven by recent price hikes and a better product mix.
Shares of Eicher Motors snapped their four-day gains—its longest winning streak in nearly two months—to close 0.6 percent lower at Rs 27,438.75 apiece ahead of results' announcement.
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