The maker of Royal Enfield motorcycles, Eicher Motors posted its September quarter (Q2FY22) results on Wednesday, 3 November 2021.
The company’s consolidated revenues (topline) stood at ₹2,250 crore, up 5% year-on-year. Its production was impacted in the current quarter owing to the semiconductor shortage and supply chain issues. The company’s net profit grew from ₹343 crore in the same quarter last year to ₹373 crore in the current quarter, thereby growing 9% year-on-year.
While sales of Royal Enfield were weak in the domestic markets, sales in international markets witnessed a sharp bounce. Sales volumes grew 132% in the international markets.
Recently, the company strengthened its product portfolio by launching the all new classic 350 Royal Enfield motorcycle.
Further, the commercial vehicle business, which is a joint venture between the Volvo group & Eicher Motors witnessed a handsome revenue growth of 80%.
According to the company, demand continues to be strong ahead of the festive season and owing to the improving consumer sentiment over the year.
According to the management, the semiconductor and supply chain issues are also expected to ease off in the next quarter.
In the current financial year, the company's share price has declined by nearly 3%. On the other hand, the Nifty50 index has risen by almost 21%, which shows that Eicher Motors has significantly underperformed the Nifty50.