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Eicher Motors Beats Quarterly Profit Estimates on Strong Sales

May 22 (Reuters) - Indian automaker Eicher Motors beat quarterly profit ​estimates on Friday, as last year's tax ‌cuts boosted demand for its high-margin 350-cc motorcycles.

The Royal Enfield Himalayan 450 adventure bike manufacturer posted a near ​12% rise in consolidated net ​profit to 15.2 billion rupees ($158.85 million) ⁠for the March quarter from a year ​ago.

Analysts had estimated a quarterly profit of 14.87 billion ​rupees, according to data compiled by LSEG.

India's top premium motorcycle maker was the biggest beneficiary ​of the September tax cuts that ​lowered duties from 28% to 18% on the 350-cc category, ‌which ⁠occupies a large chunk of the company's portfolio.

Its total revenue jumped 16% to 60.80 billion rupees, beating analysts' average estimate of 59.98 billion rupees.

After posting ​higher quarterly ​profits, ⁠peers Bajaj Auto, TVS Motor and Hero MotoCorp are relying ​on a premium product mix, ​export ⁠expansion and cost controls to cushion higher shipping expenses and commodity prices stemming from the ⁠closure ​of the Strait of ​Hormuz.

Reporting by Kashish Tandon and Urvi Dugar in Bengaluru; ​Editing by Harikrishnan Nair and Shreya Biswas

Source: Reuters


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