Eicher Motors share price falls over 6% as net profit up 18% at ₹1,171 crore and Board reshuffle

The stock declined 6.39% to ₹4,994.45 per unit on the National Stock Exchange (NSE) at 1:12 pm.

The company posted an 18% increase in its consolidated post-tax profit at ₹1,171 crore for the latest December quarter, compared to ₹996 crore in the year-ago period. However, it missed street estimates.

Revenue from operations increased 18.9% to ₹4,973 crore in the quarter under review as against ₹4,179 crore in Q3 FY24.

Royal Enfield reported its highest-ever quarterly sales of 2,69,039 motorcycles, up 17% from 2,29,214 units sold a year ago.

Siddhartha Lal, Managing Director of Eicher Motors, said, "The past quarter has been incredibly rewarding for Eicher, with an all-around record performance across the board. We recorded our best-ever festive performance, introduced exciting new motorcycles, and took our first step into electric mobility with the debut of our EV brand, Flying Flea."

"Even as the commercial vehicle industry remained sluggish, VE Commercial Vehicles grew volumes quarter-on-quarter with strengthened market share in all segments. With this momentum across both motorcycle and commercial vehicle businesses, we are confident of continued success in the future as well," he added.

VE Commercial Vehicles (VECV), a joint venture between the Volvo Group and Eicher Motors, which sells trucks and buses, reported ₹5,801 crore as revenue from operations. In the same quarter of FY24, the revenue stood at ₹5,483 crore.

The company also announced a Board reshuffle, appointing Siddhartha Lal as the Executive Chairman after Chairman S Sandilya retired.

Vinod Aggarwal was appointed Vice Chairman (Non Executive), and B Govindarajan will take over as the new Managing Director of the company.

Aggarwal will continue as MD and CEO at VECV, while Govindarajan will retain his role as CEO of Royal Enfield.