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India’s Eicher Motors Ltd missed analysts’ estimates for quarterly profit on Thursday, as costs at the Royal Enfield motorcycle maker rose 50%.
The company’s consolidated net profit rose 76% year-on-year to 6.57 billion Indian rupees ($80.41 million) in the quarter ended Sept. 30, while income from operations rose 56.45% to 35.19 billion rupees.
Analysts on average had expected a profit of Rs 6.97 billion and revenue of Rs 36.49 billion, according to Refinitive IBES data.
Total cost rose to Rs 28.32 billion due to higher raw material and component costs.
The Gurgaon-based company said it sold 203,451 units of Royal Enfield motorcycles during the quarter, up 64.7% from a year ago.
The company’s joint venture with AB Volvo of Sweden, saw a 16.4% increase in total sales in the commercial vehicle segment.
The company’s peers TVS Motor, Hero MotoCorp also missed quarterly profit estimates, while Bajaj Auto beat expectations.
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