Eicher Motors fell as much as 3.5 per cent to hit an intraday low of Rs 20,905 a day after the Royal Enfield bike maker reported net loss of Rs 55 crore in quarter ended June 30 as against a profit of Rs Rs 452 crore during the same quarter last year. The company's revenue from operations slumped 66 per cent to Rs 818 crore in the first quarter of current financial year, from Rs 2,382 crore in the year-ago period. In a regulatory filing after market hours, Eicher Motors said its EBITDA or earnings before, interest, tax, depreciation and amortization - also known as operating profit - came in at Rs 4 crore in the April-June period, compared to Rs 614 crore in the year-ago period.
"The previous quarter put forth unprecedented challenges for the industry and for Eicher Motors. However, we believe that the long term potential for both Royal Enfield and VECV is very promising. Towards the end of the quarter we've witnessed encouraging consumer sentiment which was evident in our sales for the month of June. We believe that this trend will continue into this quarter as well," said Siddhartha Lal, managing director of Eicher Motors.
Royal Enfield sold 58,383 motorcycles in the June quarter, marking a decline of 68 per cent compared to 1,81,966 motorcycles in the year-ago period, Eicher Motors said in a press release.
As of 10:29 am, Eicher Motors shares traded 3.4 per cent lower at Rs 20,935, underperforming the Sensex which was up 0.3 per cent.