Royal Enfield maker Eicher Motors has reported a steep 21.6 percent year-on-year fall in June quarter consolidated profit at Rs 451.8 crore, dented by subdued volume performance and weak operating income.
Profit in corresponding period last fiscal stood at Rs 576.2 crore.
Consolidated revenue during the quarter declined 6 percent year-on-year to Rs 2,381.9 crore as Royal Enfield volumes fell by 19 percent YoY due to weak demand and high ownership cost.
At operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) degrew by 22.8 percent year-on-year to Rs 614.5 crore and margin contracted 560bps YoY to 25.8 percent in quarter ended June 2019.
Numbers were slightly below analyst expectations. Profit was estimated at Rs 491 crore on revenue of Rs 2,395 crore and EBITDA was expected at Rs 639 crore with margin at 26 percent for the quarter, according to a poll of analysts conducted by CNBC-TV18.
Eicher Motors said the share of profit of joint venture (VE Commercial Vehicles) stood at Rs 20.85 crore in June quarter 2019, falling sharply compared to Rs 64.29 crore reported in year-ago.
The stock closed at Rs 16,350.15, up Rs 190.95, or 1.18 percent ahead of June quarter earnings.
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