Profits for Eicher Motors, makers of Royal Enfield bikes, misses estimates
India's Eicher Motors Ltd fell short of analysts' estimates for quarterly profit on Thursday, as costs jumped 50% at the Royal Enfield motorcycle maker.
The company's consolidated net profit surged 76% year-on-year to 6.57 billion Indian rupees ($80.41 million) for the quarter ended Sept. 30, while revenue from operations rose 56.45% to 35.19 billion rupees. Analysts on average had expected a profit of 6.97 billion rupees and revenue of 36.49 billion rupees, according to Refinitiv IBES data. Total expenses soared to 28.32 billion rupees on higher raw material and component costs.
The Gurgaon-based company said it sold 203,451 units of Royal Enfield motorcycles in the quarter, a 64.7% jump from a year earlier. The company also posted a 16.4% rise in total sales in its commercial vehicle segment, a joint venture with Sweden's AB Volvo.
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The company's peers TVS Motor, Hero MotoCorp also missed quarterly profit estimates, while Bajaj Auto beat expectations.
($1 = 81.7050 Indian rupees)
