As the Q2 profit fails to meet expectations, Eicher Motors shares decline
- ByStartupStory | November 12, 2022
The day after the automaker released its Q2 results, on November 11, shares of Eicher Motors fell more than 3 percent intraday. As costs increased by 50%, the Royal Enfield motorbike manufacturer’s earnings for the third quarter of September fell short of experts’ projections.
The automaker announced on Thursday that strong sales in both domestic and foreign markets contributed to a 76 percent increase in consolidated earnings after tax to Rs 657 crore in the September quarter. For the period of July through September 2021–2022, the company has reported a net profit of Rs 373 crore. According to a regulatory statement by Eicher Motors, overall operating revenue grew to Rs 3,519 crore from Rs 2,250 crore in the same period last year.
According to Refinitiv IBES statistics, analysts had anticipated a profit of Rs 697 crore and revenue of Rs 3649 crore. Due to rising costs for raw materials and components, overall expenses increased to Rs 2832 crore.
A part of the corporation called Royal Enfield sold 2,03,451 motorcycles in the third quarter, rising 65 percent from the same time last year. The overall performance of the company in the first half of the current fiscal year was quite positive, according to Siddhartha Lal, managing director of Eicher Motors.
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