Eicher Motors on Thursday reported a 25% year-on-year rise in its consolidated net profit at Rs 576.2 crore for the three months to June.
Eicher Motors on Thursday reported a 25% year-on-year rise in its consolidated net profit at Rs 576.2 crore for the three months to June. This is the company’s highest quarterly profit in about a decade. The growth in the bottom line was driven by a 13% year-on-year rise in revenues and the management’s ability to contain costs. Revenues for the quarter came in at Rs 2,548.The share of raw materials to sales rose by about 500 basis points.
The Eicher Motors stock closed at Rs 27,484.25 on the Bombay Stock Exchange on Thursday, virtually flat over Wednesday’s close. The stock has gained 9% in 2018 so far. While the company’s Royal Enfield volumes grew by 23% y-o-y in 1QFY19, the commercial vehicle maker lost 1.5% market share to Tata Motors in the M&HCV (medium and high commercial vehicles) segment.
At the end of the quarter, Eicher’s market share stood at 10.4% compared with 11.9% a year ago. In April this year, the management raised its production guidance for FY19 to 9,50,000 from 9,00,000 while maintaining the capex guidance at `800 crore. It also plans to increase its dealership count to 1,075 in FY19, from the current 975.