Eicher Motors Q4 Results: Profit Up 16% Even As Sales Fall
Eicher Motors Ltd.’s quarterly profit rose even as demand for its premium motorbikes fell.
Net profit of the maker of Royal Enfield motorcycles rose 16% year-on-year to Rs 610 crore in the three months ended March, according to its exchange filing. That compares with the Rs 596-crore consensus estimate of analysts tracked by Bloomberg.
The earnings also rose 34% over the preceding quarter.
Eicher Motors Q4 FY 22 Highlights (YoY)
Revenue rose 9% to Rs 3,193 crore, in line with the forecast.
Operating profit rose 19% to Rs 756.57 crore, against the estimated Rs 711 crore.
Operating margin stood at 23.7% against 22.7%.
Royal Enfield sold 9% fewer units over the year earlier at 1.73 lakh units in the January-March period because of the global chip shortage.
For peers Hero MotoCorp Ltd. and Bajaj Auto Ltd., muted rural demand, costly fuel, high ownership expense, and price hikes to counter input cost pressure hurt sales of budget motorcycles. That hurt their profit and revenue in the quarter ended March.
Shares of Eicher Motors closed 1.5% higher before the results were announced compared with a 0.16% decline in the benchmark Nifty 50.