Eicher Motors informed stock exchanges that the board of directors will meet on March 11, 2020, to consider and approve a proposal for payment of interim dividend.
Eicher Motors share price jumped as much as 4.87 per cent to Rs 17,835.20 apiece on BSE in Tuesday’s trade after the company informed stock exchanges that the board of directors will meet on March 11, 2020, to consider and approve a proposal for payment of interim dividend. Earlier, the Royal Enfield maker released its sales figures for February 2020, where sales of motorcycles of models with engine capacity up to 350cc remained flat at 57,292 units on year-on year (YoY) basis, while models with engine capacity exceeding 350cc grew 11 per cent YoY to 6,244 units. Overall, sales figures posted one per cent on-year growth to 63,536 units in February. However, exports declined 8 per cent to 2,348 units in February 2020.
The company in its press release said that the coronavirus outbreak had a minimal impact on the production of its motorcycles in February. “Some of the company’s supply partners have dependencies on the manufacturers in China for sourcing certain specific components. The company is making all efforts to maintain continued supplies of these components,” it said in a press release.
Brokerage and research firm Motilal Oswal has given a buy rating to Eicher Motors, with a target price of Rs 25,350, an upside of 53 per cent. Around 11.30 AM, Eicher Motors shares were trading 3.62 per cent higher at Rs 17,622 apiece on BSE.
On BS-VI transition, Eicher Motors has already moved a large part of its product portfolio to BS-VI and is seeing a good response to the BS-VI motorcycles. The production of BS-VI motorcycles is ramping up as the BS-VI supply chain is gradually stabilizing, Eicher Motors said.
Meanwhile, Eicher Motors posted a 6.42 cent on-year decline in the consolidated net profit at Rs 498.70 crore for the quarter ended December 31. The company had reported a net profit of Rs 532.95 crore in the same period of the previous year.