Q4 Results: Eicher Motors’ Profit Rises Even As Operating Margin Takes A Hit
Eicher Motors Ltd.’s profit for the March-ended quarter rose on account of higher other income, meeting analysts’ estimates.
Net profit of the Royal Enfield motorcycle maker rose 18 percent year-on-year to Rs 545 crore in the January-March period, it said in an exchange filing. That compares with a Rs 555-crore consensus estimate of analyst tracked by Bloomberg.
The company declared a 68 percent higher other income worth Rs 142.7 crore for the three months ended March.
Revenue declined 1.1 percent to Rs 2,500 crore in the fourth quarter, in-line with the street estimate of Rs 2,424 crore.
Earnings before interest, tax, depreciation and amortisation declined 14.1 percent to Rs 685 crore, while operating margin contracted 410 basis points to 27.4 percent.
The company also recommended dividend of Rs 125 per equity share of face value of Rs 10 each for financial year 2018-19.
Auto sales have hit a speed bump since November last year. Also, the production of Royal Enfield was affected in February as section of employees at its manufacturing facility at Orgadam in Chennai went on a strike for two weeks.
Shares of the company ended flat at Rs 20,361.35 apiece ahead of the earnings announcement. The stock declined 33 percent in the past one year compared with a 6.3 percent gain in the Nifty.