Not very surprising to find out that Eicher Motors is experiencing a slump currently after all most of the automobile industry is in the doldrums in India. Well, comparatively. The Indian automobile industry has been experiencing a drastic slowdown and registration of new vehicles have plummeted significantly over the last several months. Eicher Motors recently revealed its unaudited consolidated financial results for the quarter ended 30th June 2019.
Total revenue from operations was at Rs 2,382 crores, down by 7% as compared to Rs 2,548 crores in Q1 of FY 2018-19; EBITDA was Rs 614 crores, lower down by 24% compared to Rs 810 crores in Q1 of FY 2018-19; Profit After Tax was recorded at Rs 452 crores as compared to Rs 576 crores in the same period last year.
Royal Enfield sold 181,966 motorcycles in the quarter, registering a decline of 19% from 225,286 motorcycles sold over the same period in the last financial year. However, the Interceptor 650 and Continental GT 650 continue to gather great response from customers across the globe.
During the quarter, the Interceptor and Continental GT 650 were launched in Indonesia, Vietnam, and Malaysia. In the UK, the Interceptor 650 has emerged as the highest-selling motorcycle in the ‘Naked Street’ category.
Royal Enfield Interceptor 650 and Continental GT 650 are both powered by a newly developed 650cc parallel-twin which is currently the largest displacement engine in RE's product lineup. The motorcycles have definitely started a new class of ridership within the Royal Enfield fanbase and are the most modern machines in comparison to the other products in the lineup.
“The two-wheeler and the CV industry continue to face headwinds on account of weak consumer demand. However, our 650 Twins continue to do extremely well in India as well as across international markets and we are ramping up production to cater to the enthusiastic response. Our preparedness for the BS-VI transition continues to be on track and we are on course to meet regulatory timelines,” Siddhartha Lal, Managing Director of Eicher Motors Ltd, said.
In the Commercial Vehicles segment, VE Commercial Vehicles (VECV) - Eicher’s joint-venture with AB Volvo - continued to be affected by the demand slowdown. For the quarter ended June 2019, VECV’s revenue from operations was Rs 2,255 crores, down 14% from Rs 2,609 crores in the same period last year; EBITDA declined by 48% to Rs 125 crores from Rs 240 crores in the same period last year; Profit After Tax declined by 68% to Rs 38 crores from Rs 118 crores recorded during the corresponding period FY 2018-19. VECV sold 13,331 trucks and buses in the quarter, registering a decline of 18% over the same period last year.
“To reinforce our distribution network in India, we are working on building a network of compact retail format stores. Royal Enfield Studio Stores will be an important step towards building better accessibility across smaller towns and cities in India and allowing discerning consumers to experience the complete Royal Enfield pure motorcycling ecosystem. We will also be introducing new motorcycle variants in the coming months to widen our offering and provide greater accessibility to our discerning customers,” Vinod Dasari, CEO Royal Enfield said.