The shares of Eicher Motors fell 3.36% to touch a fresh 52-week low in the early trade on Thursday after the company reported 21% fall in its Q1 profit to Rs 451.8 crore on subdued demand and low volume.
Eicher Motors' stock is currently trading lower than 5, 20, 50, 100 and 200-day moving averages. Volume-wise, shares totalling to 1.54 lakh changed hands on BSE and NSE respectively.
In early trade on Thursday, shares of Eicher Motors fell almost 3.36% to hit a fresh 52-week low of 15,800 on BSE
Although, later the stock pared minor losses and traded near the day's high of Rs 16,559.05, at a rise of 1.27% against the previous close of Rs 16,350.15
The filing stated, "Eicher Motors's total revenue from operations was at Rs. 2,382 crores, down by 7% as compared to Rs. 2,548 crores in Q1 of FY 2018-19; EBITDA was Rs. 614 crores, lower down by 24% compared to Rs 810 crores in Q1 of FY 2018-19."
In the commercial vehicles segment, VE Commercial Vehicles (VECV) - Eicher's joint-venture with Sweden's AB Volvo - continued to be affected by the demand slowdown, with sales declining by 18 per cent YoY to 13,331 trucks and buses during the June quarter.
Moreover, sales figures of Royal Enfield registered a decline of 19% to 181,966 motorcycles in the quarter, from 225,286 motorcycles sold over the same period in the last financial year, the investor presentation added.
Siddhartha Lal, Managing Director of Eicher Motors quoted, "slowing economic growth, tightening liquidity and regulation-driven price increases, that have led to poor consumer sentiment," while commenting on the slowdown in sales of Royal Enfield motorcycles.
In a separate development, Eicher Motors reported 32.1% slump in sales for the month of July, on a y-o-y basis to 4,048 units. The company sold 5,964 units in the corresponding month last year. While the total domestic sales have fallen 28%, there is amjor 59% drop in Export sales volume.
As of 12:45 pm, shares of Eicher Motors traded at Rs 16,344.20 and Rs 16,353 on BSE and NSE, respectively.
Edited by Rupa Burman Roy