Eicher Motors on Wednesday reported a 21.52 per cent decline in its consolidated profit after tax (PAT) at Rs 452 crore for the first quarter ended on June 30, 2019.
The company had reported a PAT of Rs 576 crore in the year-ago period.
Total revenue from operations stood at Rs 2,382 crore for the April-June quarter, down 7 per cent compared to Rs 2,548 crore in same period of previous fiscal, Eicher Motors said in a statement.
Royal Enfield sold 1,81,966 motorcycles in the quarter, registering a decline of 19 per cent from 2,25,286 motorcycles sold over the same period in the last financial year.
"The two-wheeler and the CV industry continue to face headwinds on account of weak consumer demand," Eicher Motors Ltd Managing Director Siddhartha Lal said.
The company's preparedness for the BS-VI transition continues to be on track and Royal Enfield is on course to meet regulatory timelines, he added.
In the commercial vehicle industry, sales have been low due to the weak demand on account of economic slowdown and liquidity and it is also witnessing heavy discounting, Lal said.
VE Commercial Vehicles (VECV) - the company's joint-venture with AB Volvo - continued to be affected by the demand slowdown.
For the quarter ended June 30, VECV's revenue from operations stood at Rs 2,255 crore, down 14 per cent from Rs 2,609 crore in the same period last year.
PAT declined by 68 per cent to Rs 38 crore from Rs 118 crore recorded during the corresponding period of 2018-19.
VECV sold 13,331 trucks and buses in the quarter, registering a decline of 18 per cent over the same period last year.
"We expect some pick up to happen from September with the onset of the festive season and also anticipate to see some positive impact of pre-buying with BS VI norms becoming applicable from April 1, 2020," VECV CEO Vinod Aggarwal said.
