Eicher Motors, the parent company of motorcycle brand Royal Enfield, has reported a 21.6 per cent fall in net profit in the first quarter of...
Eicher Motors, the parent company of motorcycle brand Royal Enfield, has reported a 21.6 per cent fall in net profit in the first quarter of the current financial year. In the April - June period, Eicher Motors has reported Rs. 451.77 crore net profit, as against Rs. 576.18 crore in the corresponding period a year ago. The company's revenue declined by 6.8 per cent to Rs. 2,361.24 crore in the same quarter, as against Rs. 2,534.29 crore a year ago, in April-June, 2018.
Also Read: Royal Enfield Sales In June 2019 Drop 22 Per Cent
"The two-wheeler and the CV industry continue to face headwinds on account of weak consumer demand, " said Siddhartha Lal, Managing Director of Eicher Motors. "Our preparedness for the BS-VI transition continues to be on track and we are on course to meet regulatory timelines. In the CV industry, sales have been low due to the weak demand on account of economic slowdown and liquidity and it is also witnessing heavy discounting."
Commercial vehicle sales may be one thing, but Royal Enfield, Eicher Motors' profitable motorcycle brand, is also feeling the pressure. Sales of Royal Enfield motorcycles, the undisputed leader in the 350-500 cc motorcycle segment, have been under pressure for the past several months, after a prolonged positive sales run in the last couple of years. However, since the beginning of 2019, Royal Enfield has been posting negative growth with volumes far from the glory days when monthly sales had touched over 70,000 units.
from NDTV CarAndBike - Latest News https://ift.tt/2GFVClV
COMMENTS