Eicher: Near term margin pressures, volume key metrics to keep track of

Product pipeline, network expansion should help tap the uptick in recovery

The September quarter (Q2) performance of Eicher Motors was a tad ahead of expectations, led by the recovery in volumes at its two-wheeler (Royal Enfield) and commercial vehicle (CV) unit. 

Following a 67 per cent decline in revenues in the June quarter, there was a sequential improvement, with the top line declining by 3 per cent in Q2.

While volumes for Royal Enfield were down 9 per cent year-on-year (YoY), the management indicated there was a relatively faster recovery in demand in the two-wheeler segment. 

This was aided by the opening up of tier-1 cities and metros. The company said bookings were better