On Monday Eicher Motors witnesses surge of 10 per cent to Rs 2,389 on the BSE after the stock turned ex-date for stock split in the ratio 1:10. 25th August,2020 has been fixed by the company as a record date for the stock split.
On 25th May company has announced, it’s stock split plan to make the stock more affordable for the small retail investors and increase liquidity.
On 12th June the company’s board approved the stock split in the ration of 1:10 i.e. subdivision of equity shares of the company from the existing one (1) equity shares of face value of Rs 10 each into ten (10) equity shares of face value of Rs 1 each.
Around 9:37 AM, the stock trading 8.57 per cent higher at Rs 2,358 as compared to 0.47 per cent gain in the S&P BSE Sense. At 16.1 lakh shares has changed hands on the BSE and BSE combined so far.
The company which manufactures iconic Royal Enfield brand of motorcycles has seen a loss of rs 55 crore in the June quarter of FY21 (Q1FY21). It had posted a profit Rs 452 crore in the corresponding quarter last year. The company’s revenue from operations in the quarter under review Declined to Rs 818 crore from Rs 2,382 crore in AM FY21.
Earning before interest, tax, depreciation and amortisation (EBITDA) were at Rs 4 crore in the quarter as compared to Rs 614 crore in the same quarter of previous financial year.
Top official from Royal Enfield said that despite seen fast recovery in all the key market of the company, the Covid-19 pandemic – induced lockdown have been impacting production. In most earning report, Motile Q’s was said that Eicher Motors’ inquiry and booking trends were up while supply -side issue were being addressed.
“We believe new product would help expand the addressable markets and drive the next phase of growth for RE. Volume recovery, led by new product launches, would drive margin recovery in FY21, ” the brokerage said.
