During Monday's intra-day trade, shares of Eicher Motors rose 1.80% to ₹3,461 apiece after the company's August sales came in line with analysts' estimates. In an exchange filing on Friday, the company reported an 11% growth in sales to 69,023 units for models with engine capacity up to 350cc, while sales of engine capacities exceeding 350cc reached 8,560 units, up from 7,876 units, reflecting a 9% increase.
The total sales of motorcycles, with engine capacity up to 350cc and those exceeding 350cc, reached 77,583 units in August 2023 compared to 70,112 units in August 2022, reflecting 11% growth. The international business segment contributed significantly to this growth, with sales of 8,190 units in August 2023, marking a 13% increase from the 7,220 units sold in the same month of last year.
Year-to-date (April-August 2023), the company has sold 378,406 units, a YoY increase of 21% from 312,872 units sold in the same period of last year. Notably, engine capacity up to 350cc contributed to this robust growth, with sales coming at 335,851 units, marking a 27% increase. In contrast, engine capacities exceeding 350cc witnessed a YoY decline of 12% to 42,555 units. The international business segment also reported a 22% YoY drop in sales during the period from April-August 2023.
On Friday, Royal Enfield, a division of Eicher Motors, launched a new generation of Bullet 350 in the Indian market, with an ex-showroom price of ₹1,73,562. The 2023 Bullet 350 is powered by the modern, globally acclaimed 349cc air-oil-cooled single-cylinder engine that also powers the Meteor, Classic, and Hunter.
The latest avatar produces 20.2 bhp at 6100 rpm and 27 Nm of torque at 4000 rpm, resulting in strong, low-end grunt, super smooth linear power delivery, and a ride that’s both refined and invigorating, according to the company's exchange filing.
Royal Enfield is the global leader in the mid-size (250cc–750cc) motorcycle segment. Its premium line-up includes the stylish Hunter 350, the timeless Classic 350, the Meteor 350 cruiser, and the 650 parallel twin motorcycles—the New Super Meteor 650, Interceptor 650, and Continental GT 650. The adventure motorcycles include the Himalayan adventure tourer, the Scram 411 ADV Crossover, and the iconic Bullet 350.
Royal Enfield operates through more than 2,050 stores across all major cities and towns in India and through nearly 1,150+ touchpoints in more than 60 countries around the globe.
In Q1 FY24, Eicher Motors recorded a revenue of ₹3,986 crore, a surge of 17.3%. EBITDA came in at ₹1,021 crore, up 22.8% as compared to ₹831 crore in the same quarter of the previous financial year.
Profit after tax reached ₹918 crore in Q1FY24, up 50.4% as compared to a profit of ₹611 crore during the same period last year. This is the best-ever Q1 performance for the company and is also the fourth consecutive quarter of the highest-ever revenue.
Royal Enfield sold 2,25,368 motorcycles in the first quarter of FY24, an increase of 21% from 1,86,032 units in the same period of the last fiscal year.
38 analysts polled by MintGenie on average have a 'buy' call on the stock.
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