Eicher Motors share price declined more than 5% on Friday after the Royal Enfield motorcycles manufacturer reported weak sales for the month of July. Eicher Motors shares fell as much as 5.55% to ₹4,692.00 apiece on the BSE.
Royal Enfield motorcycles sales in July 2024 dropped 8% to 67,265 units from 73,117 units sold in the same month last year. This included exports of 6,057 units for the month that fell 14% from 7,055 units, year-on-year (YoY).
Sales of Royal Enfield models with engine capacity upto 350 cc declined 12% to 56,590 units in July 2024 as compared with 64,398 units in July 2023.
However, models with engine capacity exceeding 350 cc witnessed sales growth of 22% to 10,675 units from 8,719 units, YoY.
In its commercial vehicle segment, VE Commercial Vehicles Ltd (VECV), an unlisted subsidiary of Eicher Motors saw an increase in wholesales during the month of July 2024.
Total sales of VECV in July rose 12.7% to 6,622 units from 5,877 units. Total Eicher Trucks and Buses sold during the month increased 12.3% to 6,444 vehicles from 5,736 vehicles, YoY, while the total sales of Volvo Trucks and Buses jumped 26.2% to 178 vehicles from 141 vehicles, YoY.
The Board of Directors of Eicher Motors will meet on August 8 to consider and approve unaudited standalone and consolidated financial results of the company for the first quarter ended June 30, 2024.
In a separate stock exchange filing on Friday, Eicher Motors said that the GST demand it had received earlier has now been revised to 26.97 crore from ₹129.79 crore.
The original GST demand order was received by the company on December 30, 2023, for an aggregate amount of ₹129.79 crore, which includes tax demand of ₹117.99 crore and penalty of ₹11.79 crore.
“As a result of the appeal filed by the Company against the above GST demand order, the demand order is now revised from ₹129.79 crores to an aggregate amount of ₹26.97 crores (which includes tax demand of ₹24.52 crores & penalty of ₹2.45 crores),” Eicher Motors said in a regulatory filing.
Based on the company’s assessment, the aforesaid revised demand is not maintainable and the company is evaluating all options including filing an appeal against the order. The company did not envisage any relevant impact on financials, operations or other activities of the company, it added.
Eicher Motors share price has gained over 14% year-to-date (YTD), while the stock is up more than 41% in the past one year.
At 2:15 pm, Eicher Motors shares were trading 5.04% lower at ₹4,717.80 apiece on the BSE.
