Rising on a strong demand for Royal Enfield motorcycles, Eicher Motors has reported a 69 per cent jump in net profit for the June quarter.
Net profit grew Rs 337 crore against Rs 199 crore in the corresponding quarter last year. Revenue from sales rose 42 per cent to Rs 1,551 crore as the company sold 40 per cent more motorcycles. Its commercial vehicles business reported revenue of Rs 2,139 crore, up 20 per cent from same period of last year and reported a 40 per cent growth in profit to Rs 108 crore. The firm reported a strong operating profit margin of 30 per cent, against 26 per cent in last year.
The Royal Enfield brand continues to have a strong pull in the market, which is seen in a waiting period of many months. The commercial vehicle arm, VECV, sold 16,071 units in the quarter, a growth of 32.5 per cent year-on-year.
“Royal Enfield has maintained its strong volume growth in the first quarter of FY 2016-17 and we continue to take more orders than our monthly supply,” said Siddhartha Lal, managing director and chief executive, Eicher Motors.