Eicher Motors skids after strike at Royal Enfield factory

Eicher Motors fell 0.8% to Rs 19989 at 15:00 IST on BSE after the company informed that a certain section of workforce has resorted to an illegal strike at Royal Enfield's Oragadam plant in Chennai.

The announcement was made during trading hours today, 14 February 2019.

Meanwhile, the S&P BSE Sensex was down 168.17 points, or 0.47% to 35,865.94.

On the BSE, 25,000 shares were traded in the counter so far compared with average daily volumes of 7201 shares in the past one quarter. The stock had hit a high of Rs 20697.90 and a low of Rs 19930.35 so far during the day.

The firm said that it working closely with the workforce and have undertaken various constructive and confidence building initiatives. Currently, a majority of the workforce continues to report for work at the Oragadam plant. The company's other manufacturing facilities, including its plants at Vallam Vadagaland and Tiruvottiyur, continue to remain fully operational. The company added that it is focused on resolving all issues in an amicable manner while keeping the best interests of the organization and its workforce in mind.

On a consolidated basis, net profit of Eicher Motors rose 2.39% to Rs 532.95 crore on 3.45% rise in net sales to Rs 2328.25 crore in Q3 December 2018 over Q3 December 2017.

Eicher Motors owns the Royal Enfield motorcycle business. The company's joint venture with the Volvo group, VE Commercial Vehicles, designs, manufactures and markets trucks and buses.

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