Eicher Motors declares not so 'royal' motorcycle sales numbers for Nov 2018

Domestic sales volume declined 4% yoy; exports tanked 69% yoy.

Dec 03, 2018 05:12 IST India Infoline News Service

Royal Enfield Pegasus
Royal Enfield (RE), the motorcycle franchise owned by Eicher Motors Limited (EML), reported a 6% yoy volume decline (7% mom decline) for November 2018. It sold 65,744 motorcycles in November 2018 against 70,126 motorcycles in November 2017 and 70,451 motorcycles in October 2018. The volume was lower than BloombergQuint's poll estimate of 73,500 motorcycles. Export volume plunged 69% yoy (up 76% mom) to 718 motorcycles.

Within its sub-segments, RE sold 61,890 vehicles with engine capacity upto 350cc in November 2018 against 65,751 vehicles in November 2017, a decline of 6% yoy (8% mom). It sold 3,854 bikes in the higher engine capacity segment (>350cc) in November 2018, a growth of 6% yoy (down 12% mom).

During the period of strike at the Oragadam facility from September 24, 2018 to November 12, 2018, the total loss in production was 28,000 motorcycles. The Oragadam facility was operational at its full capacity starting November 13, 2018. A back-of-the-envelope calculation suggests that RE could have lost nearly 17,600-17,700 units of production volumes in November 2018 owing to the strike. Considering this fact, the announced volume number does not look too bad and could be the reason why the stock is trading in the green.

Eicher Motors Ltd is currently trading at Rs23,426.85 up by Rs21.65 or 0.09% from its previous closing of Rs23,405.20 on the BSE. The scrip opened at Rs23,307 and has touched a high and low of Rs23,510 and Rs22,950.05 respectively. So far 46,081 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs63,837.10cr.

Related Story