Eicher Motors drops after reverse turnaround in Q1

Eicher Motors lost 2.04% to Rs 21,229.90 after the company reported consolidated net loss of Rs 55.18 crore in Q1 June 2020 as compared to net profit of Rs 451.77 crore in Q1 June 2019.

Total income fell 63.05% to Rs 932.39 crore in Q1 June 2020 over Q1 June 2019. The result was announced after market hours yesterday, 13 August 2020.

The company registered a pre tax loss of Rs 50.67 crore in quarter ended 30 June 2020 as against a profit before tax of Rs 663.45 crore in quarter ended 30 June 2019. Total tax expenses stood at Rs 4.5 crore in Q1 June 2020, steeply lower than total tax expense of Rs 211.68 crore in Q1 June 2019.

Eicher Motors said that COVID19 has impacted the normal business operations of the group by way of interruption in production, supply chain, etc., during the lock-down period. The company gradually commenced operations during the month of May 2020 after obtaining necessary approvals. As a result, the volumes for the current quarter have decreased.

The board of directors of the company, has fixed 25 August 2020 as the record date for determining eligibility of members for the purpose of sub-division of each equity share of face value of Rs 10 each into ten equity shares of face value of Re 1 each.

Commenting on Eicher Motors' performance, Siddhartha Lal, MD said, the previous quarter put forth unprecedented challenges for the industry and for Eicher Motors. Towards the end of the quarter the company witnessed encouraging consumer sentiment.

Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden's AB Volvo - Volvo Eicher Commercial Vehicles (VECV) which operates in India's commercial vehicle space.

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