Auto Stock Jumps 7% after company’s international business grew by 90% for December 2024
The shares of the automobile company jumped up to 7 percent from an intraday high at Rs 5,210 per share after the company’s international business grew 90 percent in December 2024.
With a market capitalization of Rs 1.42 lakh crore, the shares of Eicher Motors Ltd were trading at Rs 5,207.95 per share, increasing around 6 percent as compared to the previous closing price of Rs 4,885.50 apiece.
Reason for rise:-
The shares of the company have seen positive movement after In December 2024 Eicher Motors Ltd’s total sales grew 25% YoY to 79,466 units, driven by 25% growth in both sub-350cc and above-350cc models. International business surged 90% YoY, contributing 11,575 units to the total, highlighting robust export performance.
Financial Growth:-
Looking forward to the company’s financial performance, revenue magnified by 3.5 percent from Rs 4,115 crore in Q1FY24 to Rs 4,263 crore in Q1FY25, however during the same time frame, net profit zoomed by 8 percent from Rs 1,016 crore to 1,100 crore.
Business Highlights:-
Royal Enfield sold 225,000 motorcycles in Q2 FY25, slightly below 229,496 units in Q2 FY24, with 206,199 domestic and 19,118 international sales. October saw record sales of over 100,000 units. New launches included the Guerrilla 450 Roadster and Flying Flea electric motorcycles, alongside international expansion in Bangladesh and Brazil.
VECV recorded its highest-ever Q2 sales of 20,774 units, up 6.2% despite a 10.8% market decline. It maintained a 36.5% share in light and medium-duty trucks, while heavy-duty sales grew 8%. Parts business grew 27%, supported by an MoU for deploying 500 LNG trucks.
Market Dynamics:-
Management expects commercial vehicle demand to rebound in H2, driven by pro-growth infrastructure investments. Despite geopolitical challenges and project delays, the Indian economy shows resilience, supporting optimism for recovery and sustained growth in the sector.
Management comment:-
Management highlighted margin pressures in a competitive market but prioritized absolute revenue growth and market share. Strategies focus on enhancing product value, consumer experience, and careful inventory management, especially considering upcoming OBD2B regulatory changes and evolving market conditions.
Company Profile:-
Eicher Motors Limited is an Indian multinational automotive firm located in New Delhi that makes motorbikes and commercial vehicles. Eicher is the parent business of Royal Enfield, which manufactures middleweight bikes.
Written by:- Abhishek Singh
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