The leader in premium bike segment, Royal Enfield reported a 30.8% growth in Domestic Sales while Exports growth stood at 40%.
The April to July growth stands at 25.5% with exports growing at 70.2%. Royal Enfield’s current order book stands at 3 months with the current focus on expanding dealer base to C and D cities (currently the company has over 550 dealerships). RE expects an incremental 15-20 bookings each month from these new dealerships.
Related Post: Ashok Leyland Witnesses a Fall in Sales on the Back of Drop in Truck Rentals
Royal Enfield is on track to sell 6.75 lakh units for 2016-17, and Q1 numbers looks in line with the planned target.
There are rumours of the company’s entry into the 750 cc category. The engine has been seen in earlier guises when it was slotted into a modified 500 chassis but this is the first time the modern retro rival for the Triumph Bonneville has been seen in something approaching production form.
Related Post: Maruti Suzuki Reports Highest Ever Domestic Sales at 125,778 units
Eicher reported 41.96% growth in Income from Operations with Net Profits standing at Rs. 329.6 crore at a growth rate of 65.83%.
While the company has not raised the prices of products since January, the main reason for improvement in the margins have been attributed to operational improvements.
Commenting on the company’s performance Mr. Siddhartha Lal, Managing Director & CEO Eicher Motors said – “Royal Enfield has maintained its strong volume growth in the first quarter of FY 2016-17 and we continue to take more orders than our monthly supply. We continue to expand our footprint in India with 566 dealerships now open across the country. In June 2016, Royal Enfield opened its store in Manila, Philippines with its global retail identity. Philippines is among the largest two-wheeler markets in the world.”
Disclosure: Analyst or Family do not hold the stock
Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.