(Reuters) -India’s Eicher Motors,, maker of Royal Enfield motorcycles, beat fourth-quarter profit estimates on Wednesday, helped by strong demand for its higher-capacity motorcycles along with elevated exports.
The company’s net profit came in at 13.62 billion rupees ($159.75 million) in the three months ended March 31, compared to 12 analysts’ average estimate of 12.68 billion rupees, as per data compiled by LSEG.
Sales of motorcycles with engine capacity above 350cc, such as the ‘Himalayan’, rose about 42% compared to a 20.4% growth the year before, reflecting growing interest in the premium segment. These models start at around 250,000 rupees.
Sales of these higher-priced, margin-boosting motorcycles accounted for 13.8% of total fourth-quarter sales, up from 12.1% in the same period a year ago.
Meanwhile, its exports grew more than 42% and made up 11.6% of total sales, as the company expanded its network into countries such as Bangladesh, although the Americas remained its largest oversease market.
The company’s total revenue from operations rose 23.2% to 52.41 billion rupees, edging past 13 analysts’ estimates of 52.14 billion rupees.
Meanwhile, expenses rose 27% to 42 billion rupees, with raw material and component costs – accounting for more than half of the total – rising 24%.
Rival Bajaj Auto is yet to report its quarterly results, while Hero MotoCorp missed profit estimates on Tuesday.
($1 = 85.2590 Indian rupees)
(Reporting by Meenakshi Maidas in Bengaluru; Editing by Mrigank Dhaniwala and Varun H K)
