Moneycontrol Bureau
New Delhi-headquartered Eicher Motors said profit from its Royal Enfield business (standalone) increased 54.2 percent year-on-year to Rs 396.2 crore.
Revenue grew by 35.5 percent to Rs 1,988.6 crore in the quarter ended September 2016 compared with Rs 1,468 crore in corresponding period of last fiscal.
Profit and operational performance missed analysts' expectations but revenue was ahead of estimates. Profit was estimated at Rs 427 crore on revenue of Rs 1,772.9 crore and EBITDA at Rs 567 crore with margin at 31.9 percent for the quarter, according to analysts polled by CNBC-TV18.
EBITDA (earnings before interest, tax, depreciation and amortisation) stood at Rs 552.8 crore and margin at 31.2 percent in Q2.
Other income during the quarter increased 58.2 percent to Rs 66.46 crore on yearly basis.
Volume growth remained strong in both Royal Enfield and commercial vehicle sales volumes in Q2. Royal Enfield volumes grew by 31 percent YoY to 1.67 lakh units and commercial vehicles sales increased 15 percent YoY to 13,408 units during the quarter.
Commercial vehicle business profit during the quarter declined 3 percent year-on-year to Rs 65.7 crore while revenue (including excise duty) increased 11.6 percent to Rs 2,128 crore and the same (excluding excise duty) rose 10.6 percent to Rs 1,972 crore.
Eicher Motors said heavy price discounting in commercial vehicle market has impacted margin in Q2. It expects third Royal Enfield plant in Chennai to be operational by Q2FY18.
At 15:49 hours IST, the stock was quoting at Rs 23,990, down Rs 541.60, or 2.21 percent on the BSE.
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