Eicher Motors on Thursday reported a consolidated net profit of Rs 334.50 crore on net sales of Rs 3,702 crore in the March quarter, broadly meeting the Street’s estimates.
However, the Royal Enfield motorcycles maker surprised on the margin front, as its EBITDA or operating margin rose to 17.2 per cent against expectations of 16 per cent in the March quarter.
Sanjeev Bhasin, executive vice president (markets & corporate affairs) at IIFL, said that Eicher Motors’ margin performance was a big positive.
Analysts polled by NDTV Profit had expected Gurgaon-headquartered Eicher Motors to post a net profit of Rs 340 crore on net sales of Rs 3,870 crore.
Margins from its motorcycle business came in at 29.9 per cent against estimates of 29.2 per cent, said brokerage Religare.
Eicher Motors’ board declared a dividend of Rs 100 per share.
Mr Bhasin of IIFL said the stock is likely to face resistance at Rs 20,000 levels. Religare has a ‘buy’ rating on the stock with a target price of Rs 22,300.
Eicher Motors shares ended 0.38 per cent lower at Rs 19,686 as compared to a 0.38 per cent gain in Nifty50 index.