Eicher Motors Ltd.’s second-quarter net profit increased as sales jumped on a low base and aided by its newly launched Hunter 350 model.
The Royal Enfield motorcycle maker’s consolidated net profit rose 76% to Rs 656.9 crore in the quarter ended in September, according to its exchange filing. Analysts’ estimates compiled by Bloomberg had pegged it at Rs 663 crore.
Eicher Motors Q2 FY23 Highlights (YoY)
Revenue rose 56% to Rs 3,519.4 crore, against a forecast of Rs 3,511.4 crore.
Operating profit rose 75% to Rs 821.6 crore, compared with estimates of Rs 837 crore.
Ebitda margin stood at 23.3%, compared with 20.9% last year and an estimate of 18.9%.
During the quarter, Royal Enfield’s total sales rose 68% year-on-year to 2.08 lakh units. The steep jump was aided by the newly launched Hunter 350 model and a low base last year, as production reduced due to shortage of semiconductors.
Sequentially, the dispatches to dealerships were 11% higher.
“At the halfway mark, our overall performance has been very encouraging. We have witnessed great uptick in the momentum with launch of new Hunter 350,” Siddharth Lal, managing director of Eicher Motors, said in a press release.
The company improved its market share in the second quarter, particularly in heavy-duty truck and bus segments for both Eicher and Volvo brands, said Vinod Aggarwal, managing director and chief executive officer of its commercial vehicle arm VE Commercial Vehicle Ltd.
Shares of Eicher Motors closed 0.9% lower before the results were announced, compared with a 0.7% fall in the Nifty 50.