Eicher Motors share price rises 2% after Royal Enfield sales jump

Eicher Motors share price gained over 2% intraday on January 4 after the auto company declared its sales numbers for the month of December.

Total Royal Enfield sales jumped 37% to 68,995 units in December 2020 as against 50,416 units in December 2019.

Sequentially, total motorcycles sales rose 8.17% in December 2020 from 63,782 units sold in November 2020. While the sales of models with engine capacity up to 350cc jumped 33% to 63,580 units, the sales of models with engine capacity exceeding 350cc surged 106% to 5,415 units in December 2020 over December 2019.

Exports soared 82% to 3,503 units in December 2020 as against 1,927 units in December 2019. The announcement was made post trading hours yesterday, 1 January 2021.

In a separate announcement, VE Commercial Vehicles, an unlisted subsidiary of Eicher Motors, announced that its total commercial vehicles (CV) sales fell 3% to 4,892 units in December 2020 from 5,042 units in December 2019.

Sequentially, however, total CV sales jumped 31.8% in December 2020 from 3,710 units sold in November 2020. While total domestic sales declined by 7.7% to 4,069 units, total exports jumped 23.6% to 618 units in December 2020 over December 2019.

Eicher Motors’ consolidated net profit dropped 40% to Rs 343.34 crore on 2.7% decrease in net sales to Rs 2,111.98 crore in Q2 September 2020 over Q2 September 2019.

Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden’s AB Volvo – Volvo Eicher Commercial Vehicles (VECV) which operates in India’s commercial vehicle space.

The stock was trading at Rs 2,593.10, up to Rs 50.75, or 2.00% at 11:16 hours. It has touched an intraday high of Rs 2,620.00 and an intraday low of Rs 2,581.25.

The scrip witnessed a spurt in volume by more than 1.53 times and was trading with volumes of 53,514 shares, compared to its five day average of 41,999 shares, an increase of 27.42%.

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