Eicher net profit down 35 percent

New Delhi, March 30 (IANS) Eicher Motors Ltd, makers of commercial vehicles and bullet motorcycles, Monday reported a 35 percent decline in its net profit for the October-December quarter.

The company reported a profit after tax of Rs.11.65 crore in the third quarter as against Rs.15.76 crore in the corresponding period last fiscal.

Eicher, which transferred its commercial vehicle and engineering components business to a joint venture company it set up with Sweden's Volvo in July last year, saw its net sales plummeting over 85 percent to Rs.78.04 crore during the period, as against Rs.547.75 crore a year ago.

EML has declared a dividend of Rs.5 per, share subject to shareholder approval.

In a separate regulatory announcement, the company said in Mumbai that it would go ahead with its proposed merger with sister entity Eicher Goodearth Investments Ltd (EGIL).

According to the merger plan, EGIL's stake in EML will be diluted completely, while the former's investment business will be transferred to Eicher Goodearth Pvt Ltd.

EML's scrip on the Bombay Stock Exchange was being traded at Rs.217.25, down 2.38 percent from the previous close, Monday afternoon.