Eicher Motors skids 6% on disappointing March quarter results

The company reported weak operational performance in March quarter with EBITDA margin contracting to 27.4 per cent, down 164bps QoQ/415bps YoY.

Eicher Motors slipped 6 per cent to Rs 19,166 apiece on the BSE on Monday, after the company reported weak operational performance during the March quarter of 2018-19 (Q4FY19). The EBITDA (earnings before interest, tax, depreciation and amortization) margin contracted to 27.4 per cent, down 164 basis points on sequential basis and 415 bps on yearly basis.

Eicher Motors, the manufacturer of the iconic Royal Enfield motorcycles, reported the lowest EBITDA margins in last 14 quarters on the back of higher technological cost due to upgraded anti-lock braking system (ABS), higher promotional activities, store expansion and weaker operating leverage.

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