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Informist, Monday, Feb. 10, 2025

 

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--Eicher Motors Oct-Dec consol net profit INR 11.71 bln 
--Analysts saw Eicher Motors Oct-Dec consol net profit INR 11.91 bln 
--Eicher Motors Oct-Dec consol PAT INR 11.71 bln vs INR 9.96 bln year ago 
--Eicher Motors Oct-Dec consol revenue INR 49.73 bln vs INR 41.79 bln yr ago 
--Eicher Motors Apr-Dec consol PAT INR 33.72 bln vs INR 29.31 bln year ago 
--Eicher Motors Apr-Dec consol sales INR 136.29 bln vs INR 122.80 bln yr ago 
--Eicher Motors Oct-Dec consol EBITDA INR 12.01 bln vs INR 10.90 bln yr ago 
--Eicher Motors Oct-Dec VE CV revenue INR 58.01 bln vs INR 54.83 bln year ago 
--Eicher Motors Oct-Dec VE CV EBITDA INR 5.09 bln vs INR 4.37 bln year ago 

 

By Anand JC

 

MUMBAI – An all-time high quarterly sales volume of Royal Enfield motorcycles and VE Commercial Vehicle units propelled Eicher Motors Ltd.'s December quarter on-year consolidated revenue growth to near two-year high.   

 

The company reported a consolidated net profit of INR 11.71 billion for the December quarter, nearly 18% higher on year. An average of 13 analysts' estimates pegged the net profit at INR 11.91 billion. Sequntially, its net profit grew just over 6%. 

 

Eicher Motors' revenue from operations for the reporting quarter was INR 49.73 billion, 19% higher compared to the base quarter. Analysts had projected a top line of INR 50.65 billion. Compared to the sequential September quarter, revenue grew 19%. Its other operating income for the reporting period was INR 850 million, 34% higher on year.

The Chennai-based company's earnings before interest, taxes, depreciation, and amortisation for the December quarter was INR 12.01 billion, 10% higher than the corresponding period a year ago. Analysts had forecast a higher EBITDA of INR 13.32 billion. 

 

EBITDA margin of the company reduced to 24.2% in the trailing December quarter from 26.1% year-on-year. Analysts had expected Eicher Motors' EBITDA margins to recede owing to the company's marketing and advertisement spends.

 

SEGMENTAL SHOW

Eicher Motors' earnings received robust support from its quarterly sales volumes in the final quarter of 2024. Sales of Royal Enfield motorcyle during the December quarter increased 17% on year to 269,039 units, a record-high for the quarter. The share of vehicles with an engine power of over 350 cubic centimetre capacity decreased by 260 basis points in the quarter, as per analyst reports. While the company is slated to launch the Classic 650 in January, the launch dates of the New Himalayan and Scrambled 440 have not been announced yet.

 

"Royal Enfield has continued to strengthen its position in the mid-size motorcycle segment, recording its best-ever quarter, driven by a robust demand for our motorcycles across the globe," Chief Executive of Royal Enfield and Wholetime Director of Eicher Motors B. Govindarajan said in a press release. 

 

In addition, sales of commercial vehicles, sold under VE Commercial Vehicles, hit highest-ever volumes of 21,012 units. VE Commercial Vehicle is the company's joint venture with Volvo, where it holds a 54.4% stake. Revenue earned through sales of VE Commercial Vehicle units for the December quarter was INR 58 billion, 6% higher on year. EBITDA for the segment was INR 5.09 billion, 16% higher on year. The profit after tax for the segment increased 44% on year to INR 3.01 billion.

 

Eicher, which currently holds the market leadership position in light-medium duty trucks, sold 9,703 units of this variant in the December quarter, compared to 9,800 units a year ago. Sales of heavy-duty trucks fell to 5,428 units from 5,627 units a year ago. Exports by VE Commercial Vehicles in the reporting quarter was 1,192 units, 44.5% higher than the same quarter a year ago. 

 

"In the quarter, Eicher was #1 in market share in the Light and Medium duty truck segment and recorded its highest Q3 sales of buses. Reflecting our focus on delivering uptime and industry leading service support to customers, VECV recorded a growth of over 25% in parts sales over Q3 last year," Vinod Aggarwal, managing director and chief executive officer of VE Commercial Vehicles said. 

EXPENSES RISE

The total expenses incurred by Eicher Motors during the December quarter was INR 39.65 billion, 22% higher compared to the same period a year ago. This was mainly due to an uptick in its raw material costs. The cost of raw materials and components consumed by company, which constitutes nearly 65% of its overall expenses, was INR 25.44 billion, 24% higher year-on-year.

 

Depreciation and amortisation expenses incurred by the company for the December quarter was INR 1.79 billion, around 22% higher on year. Eicher Motor's tax expenses of the company moderated a little, as it paid INR 2.90 billion, around 4% lower on year. 

 

For Apr-Dec, the company reported a net profit of INR 33.72 billion, registering an increase 15% year-on-year. For the same nine months, its revenue from operations were INR 136.29 billion, around 11% higher compared to the previous year.  

 

The company disclosed its December quarter earnings after the markets closed. Monday, its shares closed 0.7% lower at INR 5,335.35 on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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