Eicher Motors on Friday posted a consolidated net profit of Rs 270.82 crore, up 76.12% year-on-year, for the three months to December, missing expectations, pegged by Bloomberg poll of analysts at Rs 288.75 crore.
While revenues during the period rose 44.59% to Rs 3316.57 crore, expenses rose by 41.34% driven by a jump in raw material costs, tax expenses, employee benefits and depreciation expenses. The company’s Ebitda saw a growth of 70.6% while ebitda margins went up 238 basis points to 15.59% year-on-year. Raw material costs increased by 48.33% to R1669.44 crore while tax expenses and employee benefits went by 80.62% and 36.28%, respectively.
The company’s performance was aided by continued strong volumes for its Royal Enfield motorcycles which saw sales grow 52.98% to 125,690 units in the period under review. On the commercial vehicle business front, sales volumes saw a growth of 33.66% to 12,687 units.
“We lost production of 11,200 motorcycles due to our manufacturing facilities being disrupted by the floods in Chennai in ,” Eicher Motors managing director and chief executive officer Siddhartha Lal said, adding that the company is extracting maximum operating leverage from the motorcycle business. Royal Enfield has expanded its global footprint in key nodal cities like London, Madrid, Paris, Dubai, Bogota and Medellin. The company plans to produce up to 9 lakh motorcycles by the end of 2018 from its two existing manufacturing facilities and a third upcoming facility, in Tamil Nadu.