Eicher Motors rose 4.51% to Rs 22,026.05 at 9:30 IST on BSE after consolidated net profit surged 58.61% to Rs 376.29 crore on 42.81% growth in total income to Rs 1602.51 crore in Q1 June 2016 over Q1 June 2015.
The result was announced after market hours yesterday, 28 July 2016.Meanwhile, the BSE Sensex was down 57.17 points, or 0.14%, to 28,168.95.
On BSE, so far 1,649 shares were traded in the counter, compared with an average volume of 4,328 shares in the past one quarter. The stock hit a high of Rs 22,080, which is also a record high for the stock. The stock hit a low of Rs 21,526.05 in intraday trade.
Eicher Motors (EML)'s earnings before interest, taxes, depreciation and amortization (EBITDA) margin improved to 30.2% in Q1 June 2016 from 26.1% in Q1 June 2015.
Commenting on the company's performance Mr. Siddhartha Lal, Managing Director & CEO Eicher Motors said that Eicher Motors has started the new financial year on strong note and reported its best ever quarter results registering 42% growth and posting the highest ever quarterly income from operations at Rs 1556 crore for Q1 June 2016. In this quarter, EML also recorded its highest ever and best-in-class EBIDTA margin at 30.2%, he added.
Commenting on Royal Enfield's performance, Siddhartha said that Royal Enfield has maintained its strong volume growth in Q1 June 2016 and the company continues to take more orders than monthly supply. The response to Himalayan- Royal Enfield's first adventure-tourer, has been extremely encouraging and it is now available for booking across the country. The company continues to expand footprint in India with 566 dealerships now open across the country. The company's immediate business outlook remains strong and Royal Enfield continues to grow consistently, competitively and profitably towards leading and expanding the mid-sized motorcycle segment globally, he added.
In Q1 June 2016, Royal Enfield continued with its focus on the overseas markets. In June 2016, Royal Enfield opened its store in Manila, Philippines with its global retail identity. With a large chunk of the population using commuter motorcycles, there is an enormous potential for customers to upgrade to mid-sized motorcycles, a segment in which Royal Enfield operates, he added.
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Commenting on VE Commercial Vehicles (VECV)'s performance, Siddhartha said that VECV demonstrated an impressive performance in Q1 June 2016 with sales of 16,071 units recording a growth of 32.5% over Q1 June 2015. VECV also increased its overall market share to 15.1% in Q1 June 2016, as compared to 13.2% recorded in Q1 June 2015. VECV continues to do well in the sub 5-ton category with the introduction of Pro 1049 where it is currently selling more than 100 trucks every month since its launch in the last quarter. Eicher Motors' 50:50 joint venture with Polaris Industries, Eicher Polaris Private Ltd., through its product Multix is generating a lot of interest among its target customers. Multix is now present in 50 locations across 8 states and it continues to gain momentum in its target markets, he further added.
Eicher Motors is the flagship company of the Eicher Group. EML is one of the leading players in the Indian automotive space. Eicher Motors owns the iconic Royal Enfield motorcycle business which leads the premium motorcycle segment in India. EML's joint venture with the Volvo group, VE Commercial Vehicles, designs, manufactures and markets reliable, fuel-efficient trucks and buses.
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