Royal Enfield's parent Eicher Motors is all set to announce its second-quarter results on Friday. The stock is up 50 percent from its 52-week low as some dealer checks indicate that inventory levels have gone down and sales are picking up in certain pockets. However, Q2 is expected to be a weak quarter for the company.
Here are the key things to keep in mind ahead of the result:
- Royal Enfield’s volumes were down 21 percent year-on-year (YoY) and 10 percent quarter-on-quarter (QoQ).
- The commercial vehicle volumes were down 40 percent.
- Some price increases that the company undertook will improve realizations.
- The softer input prices will help the margins a tad bit but overall it is going to be a weak quarter.