Eicher Motors gains 6% on the back of strong Q3 results!
Its flagship brand- Royal Enfield continued strong momentum.
Eicher Motors Ltd has been trending on Dalal Street today for its strong Q3 results. The company had announced its quarterly results on 14 February after market hours. As the trading sessions opened today on Tuesday, the buzzing stock witnessed a jump of about 3% in the morning.
This listed parent company of Royal Enfield has posted revenues of Rs 2,828 crore which jumped by 27.6% sequentially and 0.65% on a YoY basis. The company is facing shortages of semiconductor chips as everyone else is in the auto industry. However, the rising demand for commercial vehicles has lent a helping hand. Also, the warm welcome of Classic 350 (Royal Enfield motorcycle) has been the biggest positive for the company. Its EBITDA (exclusive of other income) witnessed a rise of 24% QoQ to Rs 582 crore. However, on a YoY basis, it's down by 13.3%.
Its profit after tax has gone up by 15.63% sequentially to Rs 420 crore. However, on a YoY basis, it witnessed a decline of 16.16%. “The commercial vehicle industry has continued to improve quarter on quarter and is expected to continue the growth path with a lot of pent up replacement demand and strong focus continuing on infrastructure investments,’ said Vinod Aggarwal, MD & CEO VECV.
Eicher Motors Ltd is one of the leading makers of the middleweight motorcycle segment on a global level with its signature brand Royal Enfield. It is amongst the oldest motorcycles brands taking back to 1901. It has a joint venture with Sweden’s AB Volvo- VE Commercial Vehicles Limited (VECV), with which it manufactures trucks, buses and related products. Today, the stock closed 6% up at Rs 2,722.80 on the BSE.
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