Eicher Motors reports best-ever Jul-Sept revenue at INR 42.6 bln
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Earnings Review

Eicher Motors reports best-ever Jul-Sept revenue at INR 42.6 bln

Informist, Wednesday, Nov. 13, 2024

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--Jul-Sept consol net profit INR 11 bln
--Analysts saw Eicher Jul-Sept consol net profit INR 11.00 bln
--Jul-Sept consol net profit INR 11 bln vs INR 10.16 bln
--Jul-Sept consol revenue INR 42.63 bln vs INR 41.15 bln year ago
--Apr-Sept consol net profit INR 22.02 bln vs INR 19.35 bln year ago
--Apr-Sept consol revenue INR 86.56 bln vs INR 81.01 bln year ago
--Jul-Sept consol EBITDA INR 10.88 bln, unchanged on year
--Jul-Sept VE Commercial Vehicles revenue INR 55.38 bln, up 8% on year
--Jul-Sept VE Commercial Vehicles EBITDA INR 3.95 bln vs INR 4.02 bln
--Margins remained under pressure due to competitive market
--Eicher: To set up 2nd completely-knocked-down Enfield unit in Brazil by Jan

By Avishek Rakshit

KOLKATA – Eicher Motors Ltd. – the parent company of Royal Enfield motorcycles – reported its best ever consolidated revenue figure for the September quarter at INR 42.6 billion, up 3.6% on year, despite a decline in motorcycle sales during the period.

The company's consolidated net profit increased 8.3% on year to INR 11 billion but was flat sequentially. Its consolidated earnings before interest, tax, depreciation, and amortisation was INR 10.9 billion, unchanged from the same period last year.

Eicher Motors' raw material costs rose 4.3% on year to INR 23.8 billion, and purchase of traded goods costs rose 51.1% to INR 1.9 billion. Employee benefit expenses rose 13.2% on year to INR 3.5 billion, along with a rise in other cost overheads. Effectively, total expenses rose 5.8% on year to INR 33.7 billion.

Eicher Motors had reported sales of INR 41.2 billion in the year-ago period and INR 43.9 billion during Apr-Jun. The consolidated net profit was INR 10.2 billion in Jul-Sept of last year, and INR 11 billion in Apr-Jun.

During the quarter under review, Royal Enfield's sales volume fell 1.8% on year to 225,317 units compared to 229,496 motorcycles sold during the same period of 2023-24 (Apr-Mar). However, sales of Volvo branded vehicles, under the joint venture VE Commercial Vehicles Ltd., increased 6.3% on year to 20,774 units as against 19,551 in the year-ago period.

"During this quarter, we have continued to sustain the momentum both at Royal Enfield and VE Commercial Vehicles. At EICMA (Esposizione Internazionale Ciclo Motociclo e Accessori – an international two-wheeler exhibition), earlier this month, we launched two motorcycles on our 650-Twin platform; the Bear 650, and the Classic 650. In addition to this, Royal Enfield marked its foray into electric mobility with a new EV brand - the Flying Flea," Siddhartha Lal, managing director of Eicher Motors, said in a statement.

The Royal Enfield division expanded and strengthened its footprint outside India and debuted the brand in Bangladesh with a new flagship store in Dhaka, along with a manufacturing and assembly unit in the country. This plant will engage in local production and assembly of four Royal Enfield flagship models - Hunter 350, Meteor 350, Classic 350, and Bullet 350 – specifically for the Bangladesh market. The Royal Enfield division of Eicher Motors is also setting up a second completely knocked-down unit in Brazil by January, the company said.

"Basis the strong legwork that we put in during Q2 (Jul-Sept) this year, we were able to achieve a very special milestone for Royal Enfield in terms of our festive sales performance in October. We outperformed all our previous monthly sales performance and achieved 100,000+ sales in a single month," B. Govindarajan, chief executive officer at Royal Enfield and whole-time director at Eicher Motors, said in the statement.

VE Commercial Vehicles' revenue increased 8% on year to INR 55.4 billion, with its net profit increasing 11.8% on year to INR 2.1 billion. However, its EBITDA fell 1.7% on year to nearly INR 4 billion. "Margins remained under pressure in a competitive market as we successfully continued to invest in growing our Heavy Duty truck presence," the company said.

For Apr-Sept, Eicher Motors reported consolidated net profit of INR 22.0 billion against INR 19.4 billion in the year-ago period. Its revenues during Apr-Sept were INR 86.6 billion as against INR 81.0 billion in Jul-Sept of last year.

On Wednesday, shares of Eicher Motors closed 3.2% lower at INR 4,588.7 on the National Stock Exchange. The company detailed its Jul-Sept earnings after market hours. End

Edited by Tanima Banerjee

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