The automobile and motorbike manufacturer announced Q2 earnings during market hours today.
On consolidated basis, the company's net profit rose 1.19% on YoY basis backed by corporate tax rate cut during the current quarter. The company reported profit after tax at Rs 573 crores in Q2 September 2019 as compared to Rs 549 crores in Q2 September 2018.
Eicher Motors's total revenue from operations fell 9% amid slowdown in auto segment. The company reported revenue from operations stood at Rs 2,192 crore in Q2 2019 compared with Rs 2,408 crore in Q2 2018.
The company reported EBITDA at Rs 541 crore in Q2FY19, down by 26% compared to Rs 729 crore in Q2FY2018.
The company's top brand, Royal Enfield sold 163,390 motorcycles in the quarter, a decline of 22% from 209,963 motorcycles sold over the same period in the last financial year.
In the commercial vehicles segment, Eicher's joint-venture with AB Volvo continued to be affected by the demand slowdown. For the quarter ended September 2019, VE Commercial Vehicle's revenue from operations was Rs 2,004 crores, down 32% from Rs 2,966 crores in the same period last year. Profit after Tax declined by 89% to Rs. 15 crores from Rs. 142 crores recorded during the corresponding period FY 2018-19. VECV sold 11,370 trucks and buses in the quarter, registering a decline of 39.2% over the same period last year.
Shares of Eicher Motors were up 1.86% at Rs 21830. The stock has surged 21.28% in last one month compared to a 11.25% rise in Nifty Auto index.
Commenting on Eicher Motors' performance, Siddhartha Lal, Managing Director of Eicher Motors, said, "Through the last few quarters, we have continued to invest for the long term by pursuing greater innovation, improving efficiencies, and making investments in different areas. We've remained focused on building greater accessibility for our consumers, through new variant launches and improving our retail footprint. The Commercial Vehicle industry continues to be challenging due to weak industry sentiments. However, VECV gained market share in Q2 2019 despite decline in total industry volume."
Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles.
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