Eicher Motors shares dip ~1% on decline in motorcycle sales in May

3 Jun 2024 , 02:24 PM

Eicher Motors Limited’s shares fell more than 1% to ₹4,671 in early trading on 3 May following the company’s announcement of a reduction in motorcycle sales in May due to difficult circumstances.

Sales of motorcycles for the Royal Enfield manufacturer decreased by 8% in May to 71,010 units from 77,461 units in the same month of the previous year. Sales of models with engines smaller than 350cc decreased by 13% year-over-year to 59,852 units from 69,038 units. Models with engines larger than 350cc, on the other hand, saw a notable 32% growth, going from 8,423 to 11,158 units annually.

Eicher Motors’ overseas business demonstrated tenacity in the face of local market volatility, recording a 12% gain in sales to reach 7,479 units, up from 6,666 units year over year.

VE Commercial Vehicles (VECV), the company’s commercial vehicle division, reported a 9.7% increase in total sales, with 6,901 units sold as opposed to 6,289 units during the same period previous year. Additionally, there was a noticeable increase in domestic sales, which increased by 8.2% to 6,304 units from 5,826 units year over year (YoY). Notably, exports significantly increased from 250 units YoY to 415 units, a 66% increase.

On the other hand, Volvo Trucks & Buses had a 14.6% decrease in overall sales, amounting to 182 units compared to 213 units YoY.

The company’s net revenues for the quarter ended in March increased to ₹4,192.08 Crore, up 9.42% from ₹3,831.35 Crore the year before. In comparison to March 2023, net profit increased significantly by 31.66% to ₹983.31 Crore from ₹746.86 Crore.

At around 2.24 PM, Eicher Motors was trading 1.19% lower at ₹4,677.20 per piece, against the previous close of ₹4,733.45 on NSE. The counter rose to an intraday high of ₹4,800 in today’s session.

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