"Eicher Motors two wheeler division Royal Enfield reported a 5% degrowth in total sales for the month of August to 50,144 units which was slightly below street estimates. Models with engine capacity upto 350cc reported a growth of 4% YoY to 46,357 units while Models with engine capacity exceeding 350cc reported a degrowth of 54% YoY to 3,787 units. Exports registered a degrowth of 38% YoY to 2,573 units. The commercial vehicles segment reported a 30% drop in sales to 2,477 units. Total domestic CV sales were down by 30.3% YoY to 2190 units while exports were down by 21.4% YoY to 250 units. Volvo truck sales were down by 51.3% YoY to 37 units. Within the CV segment the HCV segment reported a much sharper contraction in sales as compared to the MCV segment.
We expect the two wheeler segment will continue to do well going forward driven by growth in models with engine capacity upto 350cc in the domestic market. We also expect degrowth in the premium segment will come down as exports start to normalize. While we are positive on the two wheeler segment we continue to maintain our cautious stance on the commercial vehicle business which is expected to normalize only by Q4FY21."
Shares of EICHER MOTORS LTD. was last trading in BSE at Rs.2131.6 as compared to the previous close of Rs. 2093.2. The total number of shares traded during the day was 135932 in over 18884 trades.
The stock hit an intraday high of Rs. 2173.9 and intraday low of 2104.55. The net turnover during the day was Rs. 290787790.