Today, shares of Eicher Motors surged up to 10%, making it a top gainer on the Nifty in terms of percentage, as the 1:10 stock split will take effect from today. It was the third day for the Royal Enfield Motorcycle-maker to be in the gainer’s list.
The board meeting of the company held in June had approved a stock split in the ratio of 1:10, giving its nod to sub-division of equity shares of the company from its existing one equity share of the face value of Rs10 each into ten equity shares of the face value of Rs 1 each.
Currently, Eicher Motors shares were trading at 7% higher at Rs 2,321 against 0.5% gain in the Nifty 50 index. The share before pre-stock split had closed 1.5% higher at Rs 21,702.
The company had reported a consolidated net loss of Rs 55 crore in the April-June quarter, compared to the company’s net profit of Rs 452 crore in a year-ago period. During the quarter, total revenue of the company declined by 66% to Rs 818 crore, as compared with Rs 2,382 crore in the previous year period.
Siddhartha Lal, MD of Eicher Motors, commenting on the results said, “The previous quarter put forth unprecedented challenges for the industry and for Eicher Motors. However, we believe that the long term potential for both the Royal Enfield and Volvo Eicher Commercial Vehicles Ltd. (VECV) is very promising.”
Royal Enfield had also reported a fall in a total number of sales by 26% to 40,334 units last month, as compared to 54,185 units that were sold in the same month previous year. Domestic sales declined by 23% to 37,925 units, compared to 49,182 units in the same month a year ago. The company said its Interceptor 650 becomes the highest selling motorcycle in the middleweight segment and leading the motorcycle segment in the UK.