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Eicher Motors' profit rises 40% on back of strong sales of Royal Enfield motorcycles

In revenue terms, the Royal Enfield business contributed Rs 1,096.8 crore to Eicher Motors' books in Q1 FY16, up 47% over Rs.746.2 crore in Q1 FY15.

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Eicher Motors profit up 40% on back of strong sales of Royal Enfield motorcycles
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Eicher Motors' standalone business, Royal Enfield sold 199,458 motorcycle units in the first six months of 2015, compared to 138,400 units sold in the first six months of the previous year, a 44.17% jump. 

In revenue terms, the Royal Enfield business contributed Rs 1096.8 crore to Eicher Motors' books in the first quarter (Q1) of FY16, up 47% over Rs 746.2 crore in Q1 FY15. 

In Q1 FY16, Eicher Motors reported a net profit of Rs 221.8 crore, up 40% over Rs 157.4 crore in the same period last year. 

Commenting on the company's results, Director and CEO Eicher Motors Siddhartha Lal said, “Royal Enfield continues its strong momentum by posting robust volume growth and maintaining a very healthy order book in Q2 2015.”

In June 2015, Royal Enfield acquired Harris Performance, a engineering and motorcycle chassis designing firm. “We continue to make investments as per our plans towards capacity expansion, enhancing our brand experience and in product development," Lal said. Royal Enfield hopes to exploit the UK company's expertise and apply it to its mid-sized motorcycle segment. 

Thus far in 2015, the company has opened two new stores in Colombia (February), and one in Dubai (June). 

On Tuesday, Eicher Motors' stock had touched a lifetime high of Rs 21,620, however, at 1207 hours, it was trading down Rs 96.70 or 0.45% at Rs 21,239.85 a share on the BSE as stakeholders sold the scrip to book profits. 

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