Eicher Motors hits lifetime high on robust Q1 results

The stock rallied 6% to Rs 22,382, also its lifetime high on the BSE in intra-day trade.

Eicher Motors (EML) has rallied 6% to Rs 22,382, also its lifetime high on the BSE in intra-day trade, after the company reported 58.6% year on year (YoY) growth in net profit at Rs 376 crore for the quarter ended June 30, 2016 (Q1FY17), on back of healthy revenue. The automobile company had profit of Rs 237 crore in the same quarter last fiscal.

Revenue grew 42% to Rs 1,556 crore during the quarter under review against Rs 1,096 crore in year-ago period.

EBITDA (earnings before interest, tax, depreciation and amortisation) margin expanded 410 basis points to 30.2% in June quarter from 26.1% in previous year quarter.

Commenting on the company’s performance Siddhartha Lal, Managing Director & CEO Eicher Motors said, “in this quarter, EML also recorded its highest ever and best-in-class EBIDTA% at 30.2%.”

“Royal Enfield has maintained its strong volume growth in the first quarter of FY 2016-17. Our immediate business outlook remains strong and Royal Enfield continues to grow consistently, competitively and profitably towards leading and expanding the mid-sized motorcycle segment globally,” said Siddhartha Lal.

At 10:02 AM, the stock was up 3.7% at Rs 21,864 on the BSE. A combined 88,954 shares changed hands on the counter on the BSE and NSE so far.