Eicher margins resilient despite higher costs

Cost management helped company maintain profitability

The Eicher Motors stock shed 1.6 per cent after the September quarter (Q2) results marginally missed consensus estimates. Led by a strong 21.7 per cent growth in volumes of Royal Enfield, the company posted a 23.5 per cent increase in consolidated revenues to Rs 2,167 crore, its highest quarterly sales to date. This is, however, lower than estimates at Rs 2,208 crore. The miss in estimates is due to the lower-than-estimated realisations at Royal Enfield. The company passed on the two per cent price drop after the implementation of the goods and services tax (GST). 

Despite the increase in raw