Eicher Motors gains over 5% as Q4 profit beats estimates

Royal Enfield continues to have a strong demand for its products and has a very strong order book, the company said.

Eicher Motors has rallied 8% to Rs 18,359 on the BSE after the company reported a better than expected consolidated net profit of Rs 271 crore for the fourth quarter ended December 31, 2015 (Q4) on the back of strong net sales.

The maker of Royal Enfield motorcycles posted a profit of Rs 154 crore in the same quarter last year.

Meanwhile, net sales of the company during the quarter increased by 46% to Rs 3,248 crore against Rs 2,226 crore in the corresponding quarter of previous year.

Analysts on an average had expected net profit of Rs 253 crore on revenues of Rs 2,794 crore for the quarter.

Earnings before interest, tax, depreciation and amortisation (Ebitda) expanded by 240 basis points to 15.6% from 13.2%.

The company said Royal Enfield continues to have a strong demand for its products and has a very strong order book.

Speaking on Royal Enfield’s performance Mr. Siddhartha Lal, Managing Director & CEO, Eicher Motors said, “Royal Enfield continued with its strong performance in Q4 2015 despite being effected by one of the worst floods in Chennai in the last two months of 2015. We lost production of 11,200 motorcycles due to our manufacturing facilities being disrupted by the flood.”

At 01:04 PM, the stock was up 7% at Rs 18,200 on the BSE with a combined 152,062 shares changed hands on the counter on the BSE and NSE.