Moneycontrol Bureau
Eicher Motors, the Royal Enfield maker, on Wednesday said profit on consolidated basis grew by a whopping 50 percent to Rs 418.2 crore compared with Rs 278.7 crore in year-ago quarter. It was boosted by higher revenue and operating income.
Revenue during the quarter increased 42.6 percent to Rs 2,071.4 crore from Rs 1,452.1 crore in corresponding quarter of last year, aided by higher sales volumes despite demonetisation.
Operating profit on consolidated basis rose sharply by 61.3 percent year-on-year to Rs 577 crore and margin expanded by 199 basis points to 31.45 percent in the quarter ended December 2016.
Earnings were stable in the quarter gone by. Profit was estimated at Rs 430 crore on revenue of Rs 1,843 crore and operating income was expected at Rs 576 crore with margin at 31.2 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18.
Royal Enfield volumes grew 38 percent YoY and 4 percent QoQ to 1.74 lakh units while commercial vehicle volumes fell 7 percent, impacted by demonetisation. Fleet operators postponed purchases on account of cash crunch.
Meanwhile, Eicher sold 59,676 units of Royal Enfield in January 2017, up 25 percent compared with 47,710 units sold in year-ago month. Exports increased 171 percent to 1,543 units in the month gone by.
Commercial vehicles sales during the month increased 19.8 percent to 4,515 units compared with same month last year.
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