Analysts had expected the Royal Enfield maker to report a consolidated net profit of Rs. 537.5 crore on consolidated revenues of Rs. 2,852.7 crore.
The company’s consolidated operating profit in the quarter rose 13.5 per cent on a year-on-year basis to Rs. 672 crore with margins coming in at 23.7 per cent. Analysts had expected the two-wheeler maker to report an operating profit of Rs. 678.9 crore.
The company saw a sharp uptick in the cost of raw materials in the quarter, as they rose 52 per cent on year to Rs 1,672.97 crore.
Royal Enfield sold 1,99,000 motorcycles in the quarter, an increase of 5 per cent compared with the year-ago period.
“The third quarter has seen steady business growth and encouraging performance across the board. Consumer sentiment and demand have improved, and this is reflected in our volumes for the quarter,” said managing director Siddhartha Lal.
