Sharemasterindia.com: Royal Enfield bike-maker Eicher Motors reported a 40 per cent year-on-year rise in net profit on the back of 30 per cent jump in revenues in the June quarter. Eicher Motors net profit of Rs 222 crore and sales of Rs 2,917 crore broadly met Street estimates.
Royal Enfield sales, which contribute around 50 per cent to Eicher Motors' revenue, jumped 44 per cent during the quarter. Revenues from sales of Royal Enfield jumped 47 per cent to Rs 1,097 crore during the quarter.
Operating margins in the Royal Enfield segment improved 150 basis points to 26.4 per cent. Royal Enfield's margins are much better as compared to most other motorcycles manufactured by companies such as Bajaj Auto and Hero MotoCorp.
Margins in the commercial vehicles segment grew 120 basis points to 7.8 per cent. Eicher Motors' overall margins improved by 210 basis points to 14.8 per cent against estimate of 14.5 per cent.
Eicher Motors shares fell as much as 3 per cent to Rs 20,755 on Wednesday as investors booked profits after the recent rally. Eicher Motors shares are up nearly 50 per cent against 2 per cent gain in the broader Nifty in last three months.
As of 10.46 a.m. shares in Eicher Motors shares traded 2.28 per cent lower at Rs 20,850 apiece, underperforming the broader Nifty, which was up 0.50 per cent at 8,571.7.
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