Eicher Motors Reports Loss Of Rs 55 Crore In June Quarter

Eicher Motors on Thursday reported a consolidated net loss of Rs 55 crore in the quarter ended June 30. The auto maker had posted a net profit of Rs 452 crore in the corresponding period a year ago. 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.

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.

"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.

Eicher Motors shares ended 2 per cent lower at Rs 21,671 apiece on the BSE ahead of the earnings announcement, underperforming the benchmark S&P BSE Sensex index, which ended on a flat note. (Track Eicher Motors Shares)