Eicher Motors Limited (EML) has announced its financial results for the previous quarter and year ended 31st March, 2019. The company announced that for the quarter ended March 2019, Royal Enfield’s total revenue from operations was at Rs. 2,500 crore, down 1% as compared to Rs. 2,528 crores in the same period last year. On the other hand, EBITDA was Rs. 685 crores, down by 14% compared to Rs 797 crores while Profit After Tax was recorded at Rs. 545 crores as compared to Rs. 462 crores in the same period last year. Speaking of sales, Royal Enfield sold 197,567 motorcycles in the quarter, registering a decline of 13% from 226,907 motorcycles sold in the same period last year.
For the year ended March 2019, Royal Enfield’s total revenue from operations was up by 9% to Rs. 9,797 crore, compared to Rs. 8,965 crores recorded for the year ended March 2018; EBITDA was Rs. 2,903 crores, up by 3% compared to Rs 2,808 crores; Profit After Tax was recorded at Rs. 2,203 crores as compared to Rs. 1,960 crores in the same period last year. Royal Enfield sold close to 822,724 motorcycles in the year, registering a marginal growth from 820,121 motorcycles sold last year.
Commenting on Royal Enfield’s performance, Siddhartha Lal, Managing Director of Eicher Motors Ltd, said that the latter half of 2018 was a challenging period for the two-wheeler industry in India with factors such as revision in insurance cost, increase in prices on account of new safety norms, affected consumer sentiment. At Royal Enfield, we recorded flat sales volumes after several years of augmented sales growth. Despite a challenging fourth quarter, the trend of premiumisation continues to show significant potential. This was a landmark year for Royal Enfield as our new 650 Twins - The Interceptor 650 and The Continental GT 650 - began to retail after the global launch in California, and received excellent reviews from media and consumers across the world. He added that the company believes that the challenges are an opportunity to introspect and better ourselves. Royal Enfield believes that its fundamentals are robust, and it has the capabilities in place. He said that he is very happy to have Vinod Dasari join us as CEO, as the brand gears up with renewed focus on getting closer to its ambition of being a global consumer brand from India.
Royal Enfield said that the construction of its Vallam Vadagal plant near Chennai is largely over and the equipment is currently being installed at the said facility. The production will start in the second half of the current financial year. Moreover, the brand also states that its upcoming technical center in Chennai is near completion now where a part of the product development team has already moved in. The rest of the product development and testing teams will move in shortly, possibly by next month and other functions will move in by the later half of this financial year.