Shares of Eicher Motors jumped almost 4% on Tuesday after the automobile major announced sales for August 2020.
Total sales fell 49% YoY to 147,747, from April-August as compared to 290,798 during the same period last year. Total exports fell 60% to 7,312 between April to August 2020 as against 18,434 units in the same period last fiscal.
In its two-wheeler division Royal Enfield, Eicher Motors reported a 5% degrowth in total sales for August to 50,144 units which were slightly below street estimates. The company reported a growth of 4% YoY to 46357 units for models with engine capacity up to 350cc in August 2020 as against 44694 units in August 2019, while models with engine capacity exceeding 350cc reported degrowth of 54% YoY to 3,787 units.
Despite weak sales figures, Eicher Motors stock opened at Rs 2,104.55 and touched intraday high of Rs 2,173.9, rising 3.86% against the previous closing of Rs 2,093.20 on BSE.
Eicher Motors stock has risen 3.28% in one month and 31% in a year. Market capitalisation of the large-cap stock stood at Rs 58,241 crore as of today's closing session.
Total units exported registered degrowth of 38% YoY to 2,573 units as against 4152 units in August 2019.
The commercial vehicles segment reported a 30% drop in sales to 2,477 units, while total domestic CV sales were down by 30.3% YoY to 2190 units. Exports for the same segment were down by 21.4% YoY to 250 units. Volvo truck sales were down by 51.3% YoY to 37 units.
Commenting on Eicher Motors August sales numbers, Jyoti Roy, DVP- Equity Strategist, Angel Broking said," 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 up to 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."
Eicher Motors shares closed 1.83% higher at Rs 2,131 on BSE today.