Eicher Motors shares surge over 4% as company’s Q1 net profit jumps to ₹1,101 crore

Shares of Eicher Motors surged over 4% on Friday morning, driven by the company’s impressive Q1 earnings report. The stock was trading at ₹4,775.95, reflecting a 4.35% increase as of 9:15 am.

Key Highlights of Eicher Motors’ Q1 Performance

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  • Net Profit: Eicher Motors reported a consolidated net profit of ₹1,101 crore for the quarter ending June 30, 2024. This marks a significant 20% year-on-year (YoY) increase from ₹918 crore in the same quarter last year. The growth was bolstered by favorable commodity prices, inventory benefits, and strong performance in the Royal Enfield segment.
  • Revenue Growth: The company’s total revenue from operations stood at ₹4,393 crore, up by 10.2% compared to ₹3,986 crore in Q1FY24.
  • EBITDA and Margins: Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 14.1% to ₹1,165.5 crore, with margins improving to 26.5%, up from 25.6% in the year-ago period.

Analysts’ Expectations Surpassed

Eicher Motors’ results exceeded analysts’ expectations. Seven brokerage firms had estimated an average net profit of ₹991 crore and revenue of ₹4,207 crore for the quarter. The company’s stronger-than-expected performance contributed to the positive market reaction.